Do you pay taxes on a settlement reached in lawsuit? How about if you are awarded an amount from a judgement?
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Attorney Answers
4
Brett Wallace ·
It depends. Please provide more information.
These IRS links may help:
http://www.irs.gov/pub/irs-pdf/p4345.pdf
http://www.irs.gov/uac/Publication-525,-Taxable-and-Nontaxable-Income--1
Good luck.
0 upvotes
Jeffrey L. CohenTax LawyerAtlanta, GA ·
In general, the only way to avoid taxation of a lawsuit award is if you were physically injured. You may want to consult with a tax attorney, who will review your settlement agreement and give you clear tax advice.
0 upvotes
James M. GiffelsPersonal Injury LawyerKalamazoo, MI ·
Depends on what the judgement or settlement is for. In general, personal injury settlements (for such things as automobile accidents and workers compensation claims) are exempt from taxation under the IRS code. Settlement or judgements for wage loss from employment cases, for example, are generally taxable.
0 upvotes
Camila Medici ·
If it is a personal injury or workers' compensation settlement there should be no taxes on it.
0 upvotes
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