Lawsuit settlements

[Mister Fancypants]

Are all lawsui settlements tax free if not what under what situations are they taxable?

-Mister FancyPants

[wwweb]

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.

[Mister Fancypants]

Sorry yes, US taxes.

Thanks for the link.

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