What would you like to do?

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

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 .

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 the year that you receive the amount of lost wages.
1 person found this useful
Thanks for the feedback!

Do you have to pay federal or state taxes on an insurance claim settlement?

  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,

Do you pay taxes on the settlement of an accident insurance claim?

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

Do you pay tax on a winning settlement?

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

Are lost wages taxed in settlement in NJ?

  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).

Do you have to pay taxes on settlement from lawsuit?

  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

Do you have to pay taxes on your injury settlement?

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

Do you have to pay taxes on a vioxx settlement?

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

Do you pay tax on winning settlement in a lawsuit involving benefits vs lost wages?

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

Do you have to pay tax on settlement from a law suit for loss of property value?

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

Do you pay taxes on your settlement?

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