Are court ordered restitution payments deductible by payor?

[David]

TP was involved in a very bad accident. The medical costs and lost wages were well above the insurance coverage and the TP was ordered by the court to pay restitution to the other driver for the difference between the medical costs and lost wages vs. the insurance covereage.

The TP is planning to pay the significant amount in one payment - I don't think this matters.

In my research it seems that restitution payments are deductible if, for example, embezzled funds for which restitution payments are being made, were previously taxed as income to the TP.

Also, my research seems to only address whether personal injury payments are included in taxable income. There is no mention of whether the personal injury payments made by a TP are deductible. The research shows that the personal injury payments, both medical and lost wages, are not included as taxable income to the recipient. Since there is no mention of the tax treatment to the payer, does it stand to reason that the persanal injury payments made by the TP are not deductible?

Is the court ordered restitution for medical costs and lost wages deductible by the TP?

Thanks.

[Pacun]

Lost wages repayments are taxable to the receipient.

No deduction on the payer since this could be fine.