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Are settiements from a law suit taxable?

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are settiements from a law suit taxable?
Submitted: 1 year ago.Category: Tax
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Answered in 6 minutes by:
4/19/2016
Tax Professional: Christopher B, Esq., Tax Attorney replied 1 year ago
Christopher B, Esq.
Christopher B, Esq., Tax Attorney
Category: Tax
Satisfied Customers: 2,983
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My name is***** and I will be helping you with your question today. This is for informational purposes only and does not establish an attorney client relationship. Yes they can be, but it depends on the classification of the damage that correspond to the money you receive. (1) physical injuries or physical sickness is not taxable (2) emotional distress or mental anguish are not taxable (3) lost wages or lost profit is taxable (4) Interest is taxable (5) punitive damages are taxable. See link below for more details as some of these areas have a little more to them but those are the answers in general. See link for more information from the IRS: https://www.irs.gov/pub/irs-pdf/p4345.pdf Please let me know if you have any further questions and please positively rate my answer if satisfied. There should be smiley faces or numbers from 1-5 to choose from. This extra step will cost you nothing extra and will ensure that I will be compensated for my time by the site.
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Tax Professional: Christopher B, Esq., Tax Attorney replied 1 year ago
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