What would you like to do?
Do you pay taxes on money won in a law suit?
That depends on what the money you won is for. According to IRS Publication 17: Court awards and damages. To determine if settlement amounts you receive by compromise or judgment must be included in your income, you must consider the item that the settlement replaces. The character of the income as ordinary income or capital gain depends on the nature of the underlying claim. Include the following as ordinary income.
- Interest on any award.
- Compensation for lost wages or lost profits in most cases.
- Punitive damages, in most cases. It does not matter if they relate to a physical injury or physical sickness.
- Amounts received in settlement of pension rights (if you did not contribute to the plan).
- Damages for
- Patent or copyright infringement,
- Breach of contract, or
- Interference with business operations.
- Back pay and damages for emotional distress received to satisfy a claim under Title VII of the Civil Rights Act of 1964.
- Attorney fees and costs (including contingent fees) where the underlying recovery is included in gross income.
+ 5 others found this useful
Was this answer useful?
Thanks for the feedback!
If the money is given to you as a no-strings-attached gift, no. Money given to you by your employer or in exchange for goods or services is not a gift no matter what you agr…ee to call it.
If you are in the US, technically that would be income and you'd have to file it under miscellaneous income, much like if it were gambling winnings. Yes it is taxable -… basically, increases in wealth are taxable. The "hidden hoard" is a famous tax case where someone bought a Piano and much latter found a hoard of $ in it. There were tax accounting issues as to the $...could they offset it by the cost of the Piano, did they actually "buy" the money when they bought the piano...etc....but the bottom line is...found value is taxable.
You pay federal taxes to the Internal Revenue Service (IRS). You pay state and local taxes to the state or local tax department. You would enter prizes on your year-end ta…x return just like you would enter wages (except on a different line) and then calculate the tax due and pay any balance due.
People pay tax based on income. You might be asking how much do they withhold for taxes from your winning and it is normally 20%.
Yes. The Revenue Act of 1913, made under the power bestowed by the 16th Amendment. The current version is published as Title 26 of the United States Code, and as The Internal …Revenue Code.
You are legally required to pay taxes. Taxes are only due on money you have earned therefore if you owe taxes you have had the money. If you do not pay the taxes you owe you w…ill be sent to court and made to pay - even if you go to prison you will still owe the tax man.
You can have some income tax withheld from the distribution amount are you can choose to make some quartely estimated tax payments or you can wait until you file your income t…ax in the next year after the year that you receive the distribution amount by the due of your income tax for the previous year return and pay the full amount of taxes at that time. A calender year taxpayer the due date for filing and paying any amount owed would be April 15 of the next year
Income Tax laws are Federal Laws passed by acts of Congress and signed by the President.There is an entire Federal Court system to handle the legal cases for these laws.Th…ere are many laws about the consequences and penalties of not or improperly filing income taxes and many people are prosecuted, and even in jail, for failing to do so.The same applies to virtually all taxes on the State or Local level.Lookup the story of Leona Helmsly...a very rich women (able to and having the best defense lawyers) who because she directed the failure to pay sales tax on some TV sets, was prosecuted, paid substantial fines and spent many years in jail.Or pick any number of other well known cases...from Willie Nelson to what seems like half the world of pro sports. In fact, the famous gangster Al Capone was not eventually jailed for his leading a criminal organization, murder, extortion, etc.....but for failing to pay taxes on the money he made doing so! Prime Tax Solutions is professional firm for income tax filing in Toronto and offering Cheap Tax filing services with in Toronto Ontario Canada.
To answer your question, the taxes you pay on the money you earn (salary, income) is called income tax.
Answer It depends...and the term gets used too many ways so lets use a more general way of understanding it: If the payment, regardless of it's name, is to r…eplace something you have lost, like property or a limb or such, then (as long as you have not deducted that loss as a casualty loss or any other way), it is NOT a taxable payment. If it is for just about anythign else, in lieu of money you didnt make or as a punishment for example, it is taxable to you.
In the U.S. the general answer is yes, legally you are supposed to pay tax on any casino winnings. That said, you can also deduct losses up to the amount of your winnings. You…r CPA should be able to give you more specific information.
The Revenue Act of 1913. And thhe income tax code IS law, Chapter 24 of the US Laws, as made, voted on by Congress and signed by the President. The 16th amendment of the Cons…titution also addresses the right to make the laws doing so, although it in itself is not a law saying one has to pay.
It will depend on what damage you incurred as a result of the discrimination. ADDED: . . . . AND, what kind of (and how much) damages you are asking for, AND what the jury th…inks of your claim of discrimination.
It depends (a) on what country you're in and (b) how much you inherit. In the UK - you pay inheritance tax on estates valued at over £325,000
Yes, lots of 'em. Each state has their own sets of laws andfederally, you are supposed to claim your winnings, but that'spretty much on the honor system. When you claim your w…innings onyour federal tax, don't forget to subtract your losses. You caneasily obtain a win/loss report from the casinos you frequent ifyou call them, or stop by their customer service or players clubbooth. If you don't have a players' card at that casino, though,getting a win/loss report will probably be difficult or impossible.Casinos are not required to send the win/loss reports to the feds,so don't worry if you feel the amount you have won is tooinsignificant to claim. The IRS won't come and take you away oranything. I would, however, strongly advise you to claim anywinnings in excess of $10,000. If you made $10,0000 all in one day,you're going to be on the radar anyways, because, just like banks,casinos are required by federal law to fill out a CTR (currencytransaction report) for cash transactions over $10,000. These arenot sent to the IRS, but to homeland security, to identify possiblecases of money laundering. But if one government agency has thisinformation, how hard would it be for the IRS to get wind of it? Beyond the federal, the only state I can answer for is Indiana. Ifyou win a jackpot of $1200* or more in the state of Indiana, 3.4%state tax will automatically be taken out. You can get this back ifyou are not an Indiana resident, although I hear that can be quitea hassle. If you win a drawing, you may be required to pay statetaxes also. Just remember, though, if you don't have your currentdrivers license, state ID or passport with you when you win adrawing or jackpot, you will not be able to claim your prize untilyou can produce one of those valid documents.** *The $1200 amount is the same for any U.S. state, it is the amountthat the IRS set as a minimum. However you need to have hit 1200 inone shot. One spin, one hand of poker, or blackjack, one roll ofthe dice, whatever. If you play for a while and get small hits alot and cash out more than 1200 you're fine. ( I played for awhile, built my total up to $1300, cashed out, and went home.however I also hit a win for $1500, when I was paid, the casinoworkers also brought a tax form to fill out before they gave me the$$ ) You'll see progressive amounts for some slots/video poker stopat $1199, so more people will play them, knowing that if they wintop payout, they don't have to pay taxes. **If you don't have valid ID on you at the time of the win, youwill be removed from the property, and the casino will keep the winand possibly any money you have in the machine. You cannot be in acasino without proof of age/ID, no matter how old you are, or "whoyou know". If gaming control comes in and cards everyone, thaneveryone better have ID, or the casino can get fined, or even gettheir license pulled.
If I won the lottery and wanted to share the wealth with children siblings parents and in laws who pays the taxes and how much?
I believe you answered your own question with the "...I won the lottery...". That clearly says it's your winnings. Your just giving some of it to others. The winnings are …taxed as ordinary income...the amount or rate depends on your own personal status and factors (like other income, deductions, exemptions, etc) ...and location (State taxes). The others of course won't be subject to income tax on the gift, however, you may have gift tax consequences (which in most family situations are easily avoided).
Strictly speaking I don't think you do. However you'd be pretty foolish not to, paying council rates provides you with services such as getting your trash collected and the up…keep of important infrastructure that you benefit from