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RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience:  CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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I received checks from an Insurance Litigation settlement case.

Customer Question

I received checks from an Insurance Litigation settlement case. How do I record? What are the tax implications. The checks only totaled around 1K.
Submitted: 6 years ago.
Category: Tax
Expert:  RD replied 6 years ago.

RD :

What was the settlement for? Is this business related claim?

Customer :

I have no idea, the check stubs did not indicate any information.

RD :

Generally if the settlement is for physical injury case than the settlement may not be taxable.

RD :

Other settlements are mostly taxable.