On a sexural harassement settlement do you pay taxes?
You pay taxes on any kind of settlement. The government taxes your money regardless of how you got your money. One man went to jail because he did not pay taxes for dealing drugs, and another for embezzlement. The government wants you to pay taxes regardless of how you got your money.
The above rather extreme comment is not surprisingly, incorrect in many many ways. Theure are many, many ways to receive many and for it not to be taxable.
The type of loss causing the settlement may well drive whether the money from it is taxable. for example, if you settle for damages received to your property (somebody hit your car), or even to you, (you lost any eye because someone through a firecracker), that mony is only to restore you to the position you were in and is NOT taxable. (Similar to had you sold the car).
On the other hand, if your getting paid because of the loss of income from not having the use of the car and you lost income (same with sight), that income, which would have been taxable when made, is more than likely taxable when received as a settlement. Hence, the terms used and structure of the settlement agreement are very important and something the lawyer involved should consider.
Do I have to pay taxes on a discrimination settlement from a former employer Read More
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. Read More
No. This type of settlement is not generally taxable. Read More
totally babes! Read More
The settlement will be listed as income on your Federal tax return. You will pay the tax percentage of the bracket you are in that year. Read More
"http://wiki.answers.com/Q/Do_you_have_to_pay_taxes_on_your_court_settlement" Read More
They won't take your settlement away but you should pay some of what you owe on your back taxes. This won't happen automatically. Read More
You need to check with your work comp state laws, but in most states you do not have to pay taxes on your settlement. You can usually google something like "your state-work comp laws".gov to find website. Read More
It depends what the issue of the case is about. If the settlement is in a personal injury lawsuit, there are no taxes. This money is strictly compensation for physical injuries. If the settlement is for back-pay or loss of income lawsuit, then there probably will be taxes. Read More
Workers Compensation benefits are completely non-taxable for federal income taxes. Read More
No. FICA taxes (Social Security, Medicare, etc) are only paid on earned income. Read More
Worker's Comp payments are not taxable. Read More
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 an injured person is given a settlement for medical bills that comes out too little after taxes, it would have to be re-worked. Only smaller things can be taxed after a court case such as punitive fees assigned by the court or accrued interest. The law… Read More
If by "payroll lawsuit" you mean a lawsuit for back pay that you were entitled to but did not get, then yes you do have to pay taxes on it. This is because that money is a replacement for the income you should and would have received earlier but did not get. Had you gotten it earlier, you would have had to pay taxes on it as taxable income at that time. Read More
No, the insurance settlement is considered compensation for a loss, not income. Read More
You may have to pay capital gains taxes on a life insurance settlement in addition to any income taxes you might owe. Consult with a CPA or tax attorney to learn more about what tax consequences that a life insurance settlement may have. Read More
A settlement is usually split into two parts, recovery of damages sustained, and pain/suffering (putative). For recovery of costs, the settlement is not taxed. For pain/suffering it is taxed. Read More
If you try to accept a settlement offer from a creditor after the expiration date can they deny you the settlement amount and garnish your wages?
Yes, they can. Hoever, they can only garnish 25% of your pay after taxes. Read More
No. Areas of a settlement such as medical bills, lost wages, and pain and suffering are not taxed. Read More
Do you have to pay taxes on money received in a settlement if the defendant took your money and did not finish the job?
No! Couse weaint own nothin Read More
The auto insurance settlement wouldn't be taxable unless you realize a gain from it. Being on Social Security Disability doesn't exempt you from paying any taxes that may be due as a result. Read More
This depends on what the settlement consist of. Any part of the settlement that is reimbursement for medical expenses or pain and suffering is not taxable. If part of the settlement consists of reimbursement for lost wages, that is taxable. That is because, had you received those wages back then, you would have had to pay taxes on them. It is basically taxable money that you didn't get till after you should have. Read More
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 the court or accrued interest on the whole sum may be taxed. The attached law article describes what can be taxed in more detail. Read More
Generally speaking you do not have to pay taxes on personal injury settlements. However, in certain situations where (1) all or part of the proceeds of the settlement is treated as disability income, and (2) the premium of the policy (under which the proceeds were paid) was paid by an employer; then that part of the proceeds will be treated as a taxable ordinary income. Read More
Yes, because they have to pay taxes. Yes, because they have to pay taxes. Yes, because they have to pay taxes. Yes, because they have to pay taxes. Yes, because they have to pay taxes. Yes, because they have to pay taxes. Read More
Estates pay taxes on income and may have to pay inheritance taxes. Read More
People pay taxes in many different ways. Taxes are taken out of your paycheck, you pay taxes when you make purchases at a store, and you pay taxes on your home and property. Read More
If you receive the settlement in one lump sum, the IRS places you in a higher tax bracket for the year you receive it, so your amount in taxes is based off of your total income for that year. In this case, $107,000 in itself will have approx 28% deducted. Read More
Your Mother passed away 2 years ago and you are getting a settlement can credit card debt go after the settlement?
Well, if they are garnishing your wages, than probably yes. What you should do is call and bargain with them to pay them off. If you owe $1,000, tell them you can pay $500. It's better just to pay if off and be done with it. After all, it was you who was spending the money you didn't have in the first place. Also, you are going to have to pay taxes on this settlement… Read More
If looking at your pay stubs, you gross pay represents your total pay before taxes. The net pay is your pay after taxes. Read More
Yes. They pay income taxes and property taxes and sales taxes. Read More
My husband received part of a settlement from a lawsuit. The rst to follow. Does he need to declare the money and pay taxes on it? Have heard both pro and cons concerning this. And since tax time is coming up, we would like to know how we are to deal with this. Read More
Yes, they pay taxes. If you work you pay taxes no exceptions. Read More
if they pay the taxes for the house then no if they don't pay taxes then they do pay Read More
Citizen of Athens had to pay taxes with the rich not having to pay taxes. The rich did have to pay for thing that the tax money didn't cover. Read More
The country Sweden doesn't pay taxes, however citizens of Sweden do pay taxes. Read More
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, then no. If your employer pays the premiums or if the loss is business related then maybe. Based strictly on the information given in this question, the answer would be no. Read More
no they did not have to pay taxes Read More
I have not researched this question recently and tax law can change. Last time I looked this up, discrimination settlements were a personal injury and as such not taxable income. Read More
We have to pay taxes because the government needs to pay for its various functions. Read More