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I am currently involved in a lawsuit where Im suin my former

 

Customer Question

I am currently involved in a lawsuit where I'm suin my former employer for age discrimination and wrongful dismissal. Any settlements which may be reached, how are they taxed? ie as income in the year received for example. are any settlements devoid from tax

Submitted: 310 days and 17 hours ago.
Category: Canada Tax
Value: CA$47
Status: CLOSED

Accepted Answer

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Expert:  Debra Thal replied 310 days and 13 hours ago.


Debra Thal :

The settlement portion that is income replacement is taxed as income when you receive it.

Debra Thal :

But if there is another part of the settlement that is for damages you are not taxed on that portion.

Expert TypeLawyer
Category: Canada Tax
Pos. Feedback: 91.1 %
Accepts: 104
Answered: 6/22/2012

Experience: lawyer

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Customer replied 308 days and 1 hours ago.

Thank you

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Expert:  Debra Thal replied 308 days ago.

You are very welcome.

 
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