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Is a punitive damage award taxable?
yes
Is punitive damage taxable in New York city?
Whether or not punitive damages are taxable in New York City depends on the type of punitive damages. A punitive damage lawyer would be able to give you the specifics on the tax laws and punitive damages awards.
Is punitive damage in a law suit taxable in New York city?
Punitive damages that are awarded in a lawsuit are generally not taxable in the state of New York. However, they can become taxable if they are used to pay or compansate the plaintiff for non-persoanal injuries.
Are punitive damages taxable?
Yes
Do you pay taxes on an auto insurance settlement?
I had a huge settlement from an auto insurance company and it was not taxed. However I believe that was because my attorney negotiated a type of settlement that made it non-taxable. I thnk it has to be considered "punitive damages" or something like that for it not to be taxed. Update - Generally, amounts paid for personal injury and property damage are NOT taxable. Amounts paid for punitive damages and loss of income ARE taxable.
Do personal injury awards have to be claimed on income tax?
This can vary depending upon the award and you should talk to your tax adviser about this. If the money is for lost wages, psychological injuries and punitive damages, it is taxable.
What are the ratings and certificates for Punitive Damage - 1999?
Punitive Damage - 1999 is rated/received certificates of: New Zealand:M Singapore:PG
Are proceeds from a malpractice settlement taxable?
I am not an expert - but - for what it is worth, I would have thought they were not taxable, as they are not really earnings - they are payment to you to compensate for harm done to you.....however it is best to contact a tax expert or an accountant to advise you properly.IMPROVE: It would also depend upon the state where you live, and if punitive damages were awarded. Typically, you are not taxed on compensatory damage awards, but you are on punitive damages (loss of consortium, mental anguish, etc.) that are awarded in addition to any compensatory damages awarded.
What law allow for sueing for punitive damage?
Suits which contain provisions for punitive damage amounts are not codified in any specific statute.... it is a customary and accepted by precedent as part of civil law settlements.
What would be the income tax ramifications of a damages award of 2875000 broken down as follows Medical expenses 125000 Emotional Distress 500000 and Punitive Damages 2250000 and 3rd going to atty fee?
These can always be a bit touchy and circumstantial, but it would seem: Medical - not taxable reimbursement up to the amount of actual costs you incurred AND didn't already take as a deduction for taxes (if you previously reported these medical expenses for tax, then your recovery of that is entirely taxable). Punitive: absolutely taxable. Emotional distress: Hard to call really...probably taxable, but cases have been made, where costs and such can be directly linked to the emotional distress, that it is reimbursement for loss and not taxable. That there is also a medical portion of the award - seemingly intended to cover for the expense of emotional distress too - would seem to imply its a taxable compensation for it. How attorney fees are handled can be very tricky....and your attorney should advise you on this. It can depend on your agreement with him and if his payment is from proceeds you receive or from proceeds before, etc. Interestingly, they may NOT always be deductible or nettable against what you receive as taxable...certinaly some portion has to be attrivuted to the non taxable payment - which may mean you get a tax loss where you would have had a recovery. Clear as mud?
Do civil action lawsuit proceeds have to be claimed on income tax?
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).
Are wrongful death settlements taxable?
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/
