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What else can I help you with?
Is income from a lawsuit taxable?
Yes, any income no matter how you make it is taxable.
Are lawsuit proceeds taxable for back wages?
yes
Are proceeds from a wrongful termination lawsuit taxable income?
Yes
What are the penalties if taxable income derived from taxable employee fringe benefits goes unreported?
Try using the search engine at http://www.irs.gov
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.
Is a 401k loan taxable?
A 401(k) loan is not taxable as long as it is repaid according to the terms set by the plan. If the loan is not repaid, it may be considered a distribution and subject to taxes and penalties.
Is money from a EEOC lawsuit taxable?
Yes-if you get a settlement from the EEOC it is taxable. If it is considered wages it is taxed at the rate your wages were taxed. If it is compensatory damages it is taxed at a lower rate but it cannot exceed 50% of the settlement.
Do you have to pay taxes on money received from a civil lawsuit?
Generally yes...but it is entirely situational. Looked at broadly, if the money received is to evenly replace something of value you lost...say paying you for the broken window..then it ISN'T taxable, (as long as you didn't take a casualty deduction for the loss when it was incurred.....in which case it's taxable at least to the amount of the loss you reported, but now got compensated for). If they payment is to enforce a contract or such, where had the money been paid under the contract it would have been taxable, it is still taxable. The fact you had to sue to get it doesn't change that. If it is as a penalty or for damages of which you had no tax basis, then it is taxable.
What are the tax implications of a lawsuit settlement. I heard there are no taxes but I find that hard to believe?
It depends on what the payments are for. Damages received for personal physical injury or physical sickness are NOT taxable. Punitive damages ARE taxable. Damages for emotional distress ARE taxable except for amounts that were used to pay for actual medical expenses. These are just examples. If these don't specifically answer your question, I would recommend seeking professional advice as the tax code varies widely depending on the type of lawsuit.
Do you have to pay taxes on money from a lawsuit for pain and suffering?
It may depend on your particular state but, e.g., in Wisconsin money for pain and suffering is not taxable income.
Is there a formula to calculate penalties on early IRA withdrawals?
10% of the taxable amount. .10 X 100 = 10 .10 X 1000 = 100
Is a personal injury lawsuit settlement taxable?
No. Personal injury proceeds are considered compensation of injuries and losses, it is not a "gain" or "windfall" under the tax codes. Actually, whether personal injury damage awards are taxable depends on what the award is for. If it is to compensate for personal physical injuries or sickness, then it's not taxable (IRC Section 104(a)(2)). Emotional injury that is the result of of physical injury may not be taxable; however emotional injury that is the result of nonphysical injury (for instance, defamation or trespass) is generally taxable. Likewise, lost wages that are the result of physical injury may not be taxable. (See IRS Guidance: Lawsuit Awards and Settlements and Rev. Ruling 85-97.)
