Author Topic: Lawsuit settlements  (Read 1416 times)

Mister Fancypants

  • Bristles
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Lawsuit settlements
« on: September 03, 2014, 06:19:07 AM »
Are all lawsui settlements tax free if not what under what situations are they taxable?

-Mister FancyPants

wwweb

  • 5 O'Clock Shadow
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Re: Lawsuit settlements
« Reply #1 on: September 03, 2014, 06:24:20 AM »
Some lawsuit settlements are taxable others are not.  It depends heavily on the type of lawsuit/situation/other tax credits taken.  Here is an IRS publication which gives some of the simpler cases

http://www.irs.gov/pub/irs-pdf/p4345.pdf

edit: I'm assuming that your question refers to US taxes.  I have no idea how lawsuit settlements are taxed in other countries.
« Last Edit: September 03, 2014, 06:26:27 AM by wwweb »

Mister Fancypants

  • Bristles
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  • Age: 42
  • Location: New York
Re: Lawsuit settlements
« Reply #2 on: September 03, 2014, 06:40:17 AM »
Sorry yes, US taxes.

Thanks for the link.

That is the most colorful IRS document I've ever seen :)