What would you like to do?
Answer For US Federal taxes, it would depend on who was paying the premiums for one thing. If you pay the premiums yourself and the loss is not business related,… then no. If your employer pays the premiums or if the loss is business related then maybe. Based strictly on the information given in this question, the answer would be no.
You do not generally have to pay taxes on an insurance settlement claim. You can check with your tax firm or accountant for the rules specific to your state.
You should of course check with your tax preparer or advisor. certain types of paid claims such as Loss of future income may be taxable. But In general the answer will be "NO…" This is because most claim settlements are compensation for a loss and not considered profit or earned income.
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.
No. Gains and losses taken in your IRA is outside of your tax situation.
If identified as wages, taxed both Federal & State. The wages would have been taxed if paid without settlement wouldn't they? (The "lost" part isn't taxed).
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.
They are as taxable as normal wages...which they are...its just that they aren't given to you but to those who you owe...
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.
Yes, US earnings are taxable, (unless some political treaty with the other country is in effect).
how long does it take for an insurance company to pay a loss wage claim
Yes. Also if you have had earnings over a period of time the lost wages tax will be secondary ans The way your Q is worded makes exactly what you are asking difficult - but …as a general rule - if what you are getting paid by lawsuit for would have been taxable income had you not had to sue, it is still taxable income. Hence, it is even possible that your award will be taxable as wages (with FICA, UI, etc. requirements) and a portion as interest income. Other catagories of it - like repay of attorney/court cost or punitive can be tricky and may depend on how they are handled. You really should discuss with your lawyer how it is being structured and what the effect will be.
While your question can be open to broad interpretation, unless you took a tax loss for the loss of value of the asset you are getting compensated for, that money will NOT be …taxable. (The same may not be true for other aspects of the reward, like attorney fee's, interest and punitive damages). You still have to pay taxes if you receive a certain amount of money, whether it be value of property loss or not.
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.