What would you like to do?

Do you pay tax on a winning settlement in a lawsuit?

already exists.

Would you like to merge this question into it?

already exists as an alternate of this question.

Would you like to make it the primary and merge this question into it?

exists and is an alternate of .

Do you pay tax on a winning settlement in a lawsuit?
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.
+ 95 others found this useful
Thanks for the feedback!

Do you pay taxes on the settlement of loss of wages claim?

Yes this is very possible because the amount is replacing wages that you had not yet received and paid any income tax on yet. So the amount will be subject to income taxes in

Do you pay taxes on settlement for lemon law settlement on a car?

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

Do you pay taxes on an EEOC settlement?

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

Do you have to pay taxes on workers compensation settlements?

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
Do you have to pay income taxes on workers comp settlement in Georgia?

Do you have to pay income taxes on workers comp settlement in Georgia?

Amounts you receive as workers' compensation for an occupational sickness or injury are fully exempt from tax if they are paid under a workers' compensation act or a statute i

Do you have to pay taxes on a workmen's compensation settlement?

    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

Taxes do you have to pay on a slip and fall settlement?

Settlements that are paid for a physical injury are not taxed. The  settlement that you receive for a personal injury claim such as  slip and fall cover lost wages, medical
Do you pay taxes on an auto insurance settlement?

Do you pay taxes on an auto insurance settlement?

I had a huge settlement from an auto insurance company and it was not taxed. However I believe that was because my attorney negotiated a type of settlement that made it non-ta

Do you have to pay taxes on a settlement from a personal injury lawsuit?

It depends on what the payments are really for.   Damages received for personal physical injury or physical sickness are generally NOT taxable. If it is to replace somethin

Do you pay taxes on injury lawsuit settlements?

For the most part, no. It would be too much to factor into the total equation. In other words, making sure the settlement covered the full amount of the injuries-medical, etc-

How do you avoid paying taxes after winning a large sum of money from a lawsuit?

Taxes on Large Winnings   What the payment is for will determine its taxability. For example, a payment you receive replacing something you lost, such as a car, your home

What are the tax implications of a lawsuit settlement. I heard there are no taxes but I find that hard to believe?

  It depends on what the payments are for.   Damages received for personal physical injury or physical sickness are NOT taxable.   Punitive damages ARE taxable.  

Do you have to pay taxes on an award in a discrimination lawsuit?

It depends on waht the award is for. If it is for lost salary/wages for example, which would have been taxable income, it most certainly would be taxable by your getting throu

Do you pay taxes on money from out of court settlement?

The following settlement amounts received by compromise or judgment  must be included in income on tax returns.    Interest on any award.   Compensation for lost w