I was told on any money you get from a wrongful death suit you do not have to pay taxes on. Because you are being compensated for something you lost and can never get back. However; you should ask a tax consultant to be for certain, like H&R Block is the best ones to ask and they pay for mistakes that they make so go to them and have them do your taxes for you. Its worth the money you spend for them to file for you. :)
NO
In the USA you do not pay taxes on the Proceeds from an Insurance Claim.
My child has to pay for lunch can I claim that on my taxes?
That would depend very much on the cause and type of death.
You don't have to pay taxes.. But the government says they tax the transfer property at your death..
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.
Less
income taxes ? no insurance payments are exempt
Wrongful death and/or injury awards are not considered taxable income by the IRS. It would be advisable that any person(s) involved in such a matter should obtain advice from an attorney or tax consultant in regarding the tax laws of the state in which the award is granted and/or they reside.
Yes, if you file your babysitting income as self-employed
Yes. And if you pay more in sales taxes than state income taxes, you can use that
It would be relevant to know how this person died and who is being sued for wrongful death. Conceivably, if the wrongful death suit is won and a payment is made, then the plaintiff in the suit (presumably, a relative of the person who died) would be in a position to pay medical bills, although if the doctors are being sued for wrongful death it may not make sense to also pay their bills. If the suit fails and there is no settlement, and the estate has no money, then the medical bills do not get paid. Not every bill can be collected. Sometimes they have to be written off as noncollectable.