0
Do civil action lawsuit proceeds have to be claimed on income tax?
Wiki User
∙ 15y ago
Depends on what the recovery or award was for. General guideliens are if it stated as for replacing property you lost, putting you back where you were (say damamges to your car), it is NOT taxable (presuming you have not taken the amount of that loss as a casulty deduction previously). If it replaces lost income, from work or say rental property (which would have been taxable if you had received it normally), or is punitive in nature, it's taxable. (Although some of the costs of recovery may be deductible).
Wiki User
∙ 15y ago
Add your answer:
Earn +20 pts
Are proceeds from a wrongful termination lawsuit taxable income?
Yes
Can suing a management company disqualify you for section 8?
Not generally. The proceeds of a lawsuit is considered a refund, not income. But whatever money you set aside from your winning the lawsuit can be considered assets, of which 2% is counted as income in determining your rent amount.
Is income from a lawsuit taxable?
Yes, any income no matter how you make it is taxable.
Can the parents of a married son file a medical malpractice lawsuit on his death if the wife does or does not file. I failed to mention only son with three grandchildren 11-18yoa in Ohio?
It is possible. This answer first depends on the laws of the state which has jurisdiction over the suit. It then depends on the type of lawsuit it is. Typically, medical malpractice resulting in death is a Wrongful Death action. A Wrongful Death action exists to compensate the dependents of the decedent for the loss of income they would have received during their dependency on the decedent had the death not occurred. The parents of a married son are not dependents, therefore they suffered no loss therefore they have no standing to file a Wrongful Death action. Proceeds of a Wrongful Death action are not payable to the estate of the decedent. However, along with most Wrongful Death actions is what is called a Survivor Action. The Survivor Action is for compensation for the decedent's pain and suffering as a result of the malpractice. Had the decent lived, he would have the right to sue for pain and suffering to compensate him for that. The death of the person does not alter the fact that that action exists, otherwise the doctor would almost be better off if the patient dies than if he lived. The Survivor Action does not die with the decedent. The proceeds of the Survivor Action DO become part of the estate and are available for distribution to the intestate heirs or to the beneficiaries under the will. In the event that the parents are the sole beneficiaries under the will, they would be the ones entitled to the Survivor Action proceeds. The wife would have no standing to bring the action and perhaps not interest in it either. In that situation, the parents could bring a Survivor Action only; but the point is they could file "a lawsuit". In the event that the decedent died without a will, the proceeds would again go to the estate and be distributed to his heirs. Many state laws have provisions that if a person dies with a spouse but no children, then the decedent's parents might also receive part of the estate along with the spouse. Once again, if the wife decides against filing, and if the parents would be entitled to a part of the estate, then they would have standing to file a Survivor Action lawsuit to at least recover their share of the proceeds.
What is a synonym for annuity?
Income, grant, allowance, proceeds, net...
Are the penalties from a lawsuit taxable?
The penalties from a lawsuit is considered taxable income. The amount of tax depends on the amount of the settlement.
If you win a lawsuit in a personal injury accident do you have to claim it as income on your income tax return?
Yes!
Does extraordinary gain from lawsuit go on the income statement?
Yes
I received 191000 in a cash out refinance do I have to pay income tax on the money?
The proceeds of a loan are not income, so no tax.
Can lawsuit money be garnished for back child support in nyc?
Yes, any form of income, other than needs-based income, can be garnished for back child support in New York. Money from a lawsuit or settlement is considered income.
Are proceeds from insurance for roof replacement subject to tax withholding?
No, proceeds of an insurance claim are repayment for your financial loss. It's not considered income.
Are refinancing proceeds in excess of costs taxable?
Never subject to income tax
