What would you like to do?
That depends on several factors including the nature of the transfer and the nature of the assets that are transferred. You should consult with a tax specialist or attorney who specializes in divorce who can provide a more particular answer regarding all the categories of asset transfers that can be made in a divorce action.
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Is money you had to pay your ex-husband in a divorce settlement in Texas deductible on your federal tax return?
Answer Funds for divorce settlement are not deductible on your federal tax return. On the other hand, funds for alimony are deductible. Some divorcing spouse…s are smart enough to create a situation where 1+1=3 - i.e. agree to process the settlement as alimony if you are moving the money from a spouse that has a higher tax bracket to a spouse with a lower tax bracket. There are some caveats with the strategy. For one, make sure to do research on Alimony Recapture rules - if you pay out too much too fast, the IRS will characterize the payments as settlement. The rules are complex, and you should work with a tax attorney to make sure your settlement does not run astray of them. That said, if done properly, such a settlement can provide more money for all parties concerned.
TAX OR NO? SEE US It is my understanding that monies collected in any form which are not specifically exempted from tax status are considered… income, and taxable. To verify this, the best route to take would be to contact the local office of the I.R.S. for confirmation of the state, local, and federal requirements... The answers should be readily available without obligation, as they are a matter of record. WCI Can Be Both Taxable and Non Taxable WCI settlements/benefits generally do not qualify as taxable income as long as they are paid under the state's act or statute governing WCI for the occupational sickness or injury to a worker or death benefits to family survivor(s). WCI benefits are taxable if they are offset by SS or RRB benefits.
Answer The amount one pays as income tax depends on their TAXABLE income. It is a percentage of that income. The exact percentage used depends on the level of that inc…ome. Most but not all settlements are income (if it is a payment for a specific loss of something...a limb, a car, etc., it may not be). Taxable income depends on many things: Earnings from employment for sure, earnings from other sources (investments, government payments, etc.), and even then certain items of each may be not included, or things you may not receive in cash may be included. For example - the contribution to a 401k is not taxable income, even though it is part of your salary. On the other hand, certain benefits you may receive, like employer paid life insurance, car allowances, even access to a cafeteria that has reduced prices because of an employer supporting it), may result in taxable income to you. Once the amount of taxable income is determined, then the deductions to that income are applied. For example, interest paid on the mortgage for your home, number of dependent children, number of other qualifying dependents, medical costs, certain expenses of making that income, state taxes paid, etc.). Hence, any 2 people, holding the exact same job at the exact same salary and benefits, may well have 2 entirely different tax amounts due. Once the amount of taxable income is determined, looking at the tax rate charts (made by filing status, for example single filer verses married filing jointly), for that income determines how much one actually must pay. I'll try and provide a link to a chart.
I tried to find the answer to this question, too. After asking many friends, and googling for hours, I gave up - couldn't get a definite answer. Can anybody help? Answ…er: You will have to sign a W-9 for the settlement (or your attorney may sign it on your behalf). It is likely that a good accountant can adjust the basis for your settlement and you wouldn't owe anything, but technically, yes, it is income for tax purposes.
Generally, a legal settlement or court award is not taxed if it was for personal injury or damages due to an illness. Any interest on the award is taxable and should be report…ed. Other types of awards and settlements are taxable such as for breach of contract, lost wages or profits, punitive damages, employment discrimination, emotional distress, etc.
100'000 thousand dollar us its depends in the lawyer
It depends on what the lawsuit payment is for. Generally, if it is paying you for the loss of property, no. If it paying you for the loss earnings (or as a penalty to th…e one paying it) then it's taxable to you. (The income would have been taxed had you not had to sue).
It gets a bit complex, and very dependent on how the offical judgment was worded ..in simple form: Payments for replacement of things...like damage/loss to your car or propert…y, are NOT taxable (at least as long as you DIDN'T claim a casualty/theft/etc tax loss on them already). It just restores you to where you were. (Generally, that includes the loss of a limb, or such). A payment for loss of wages (which is at least in part because they would have been taxable had they been received normally), or to compensate you for future losses, or punish the others (punitive), are taxable.
Typically you do not have to pay taxes on personal injury settlments. Adding taxes into the equation of a specific settlement amount would be too difficult. For instnace, if a…n injured person is given a settlement for medical bills that comes out too little after taxes, it would have to be re-worked. Only smaller things can be taxed after a court case such as punitive fees assigned by the court or accrued interest. The law article below goes into more details regarding taxes and PI settlements.
You can be found in contempt of court. Each State, county and even Judge treats contempt differently. Some may issue a fine, others may garnish wages, sign over the proper…ty by court order, or even place an offender in jail.
Amounts received as workers' compensation for an occupational sickness or injury are exempt from tax if paid under a workers' compensation act or a statute like one.act. The e…xemption also applies to your survivors. The exemption, however, does not apply to retirement plan benefits you receive based on your age, length of service, or prior contributions to the plan, even if you retired because of an occupational sickness or injury. If part of your workers' compensation reduces your social security or equivalent railroad retirement benefits received, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. For a discussion of the taxability of these benefits, see Other Income under Miscellaneous Income, later. Go to the IRS gov web site and use the search box for Publication 525 Taxable and Nontaxable income
I have not researched this question recently and tax law can change. Last time I looked this up, discrimination settlements were a personal injury and as such not taxable inco…me.
Not on the majority of the settlement, as a settlement is thought of as a complete repayment for injuries suffered. Small areas of the settlement such as punitive fees from th…e court or accrued interest on the whole sum may be taxed. The attached law article describes what can be taxed in more detail.