I AM NOT FAMILIAR WITH YOUR LOCAL LAW - YOU ARE RESPONSSIBLE FOR CONFIRMING THIS INFORMATION: Back wages earned UP UNTIL the date you were ruled disabled are taxable at the normal rate. Back wages earned AFTER the date you were ruled disabled, are subject to the law governing taxation of disability pensions.
This depends on what the settlement consist of. Any part of the settlement that is reimbursement for medical expenses or pain and suffering is not taxable. If part of the settlement consists of reimbursement for lost wages, that is taxable. That is because, had you received those wages back then, you would have had to pay taxes on them. It is basically taxable money that you didn't get till after you should have.
Depends on what the recovery or award was for. General guideliens are if it stated as for replacing property you lost, putting you back where you were (say damamges to your car), it is NOT taxable (presuming you have not taken the amount of that loss as a casulty deduction previously). If it replaces lost income, from work or say rental property (which would have been taxable if you had received it normally), or is punitive in nature, it's taxable. (Although some of the costs of recovery may be deductible).
"Insurance and Taxes. No. All proceeds or withdrawals from any insurance policy are not taxable." This is not true. If you cancel a life insurance policy, the growth on the cash value IS TAXABLE. If you do not surrender your policy, the money is taken as a loan and therefore not taxable, but interest that has to be paid back to the insurance company grows.
My husband received part of a settlement from a lawsuit. The rst to follow. Does he need to declare the money and pay taxes on it? Have heard both pro and cons concerning this. And since tax time is coming up, we would like to know how we are to deal with this.
No. Only a 'financial gain' is taxable. Getting money back is a wash, not a gain.
Yes this could be possible depending on what the settlement amounts would be made for.AnswerNOPE, can't touch them. IRS, Nobody can touch any money you get compensated for personal INJURY(I thought that was your question) after you pay your medical bills and 30-40% attorney fees, the rest is yours= PERIOD. No "child support taken out" Back taxes /IRS- Nada.............Have a great day!!,AnswerIn the United States, Insurance claim settlements (such as life insurance proceeds, personal injuries or property loss) are typically not considered income and are therefore not taxable. Loss settlements of these types that result from an insurance claim are categorized legally as "indemnification" which is simply compensation for your loss. In simpler terms, there is typically no profit or gain involved and therefore no taxable income. As in many things though there is however a grey area. When compensation is for loss of future earnings or wages. Since the future wages would have been taxable when earned. One could construe some portion of such a settlement as taxable. A consultation with your attorney would be advised in such a situation.
If you have paid the loan, you can file a civil lawsuit to try to get your money back and quite possibly garnish their wages. Depending on the amount you may be able to file in small claims court. You can visit the court to inquire about the small claims court limits in your state. You will need proof that you paid the loan.
4 cents it was a lot back then
There are a few reasons why wages can be garnished in the state of New Jersey. Reasons include back child support, back alimony, or back taxes.
Yes you may given that there is proof of with held back wages.
No, but... If you the cash back was paid for the purchase of an item that you are deducting (such as a business expense), then you have to reduce the deducted amount by the cash back paid for that item. Cash back payments are not taxable for their own sake, because you had to purchase something to get them, so they are just like discounts on the items purchased.