Settlements may be taxable or nontaxable, depending on the claim that's been settled. Taxable settlement amounts include interest, compensation for lost wages, etc. There's no set federal tax rate on a settlement. How much tax you'll be assessed depends on your filing status and taxable income. Taxable settlement amounts usually are entered on line 21 (Other Income) on Form 1040. For more information, go to www.irs.gov/formspubs for Publication 525 (Taxable and Nontaxable Income).
If the stipend was for books or education, it is not taxable. Other stipends may be taxable depending on their purpose.
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ALL income is taxable.
No.
no
Generally settlements are not taxable. Some insurance payments are taxable in certain circumstances. Disability payments received on a policy that the premiums were completely paid for by your employer would be taxed as ordinary income.
No these types of payments are not taxable.
no
Yes, they are.
YES
no
The IRS states that only settlements due to physical or emotional injury are non taxable, for instance if you received a settlement for mesothelioma. States however may tax settlements as ordinary income.
Relocation settlements are taxable by the IRS. If an employer pays them to relocate an employee, they must be included in with the employees gross income total.
The taxability of court settlements depends on what the settlement is for. If it is compensation for a loss, in general it is not taxable. If it is a 'penalty' it will be taxable. Your attorney should be able to tell you what is taxed and what is not taxed. Or consult your tax professional.
Settlements received in a personal injury settlement are generally not considered income. It is usually thought of as a means of making someone whole for losses attributed to the injury and therefor isn't typically taxed. Emotional distress, when not associated with a physical injury is typically included as taxable income. Non-punitive damages received for personal injuries are excluded while, punitive damages are taxable income. http://www.pulversthompson.com/personal-injury-lawyer-blog/is-my-personal-injury-settlement-taxable/