Contact UsWe filed a lawsuit that was ultimately settled by an insurance company because we proved they lied and no one wanted the cost of court. Can you tell me if taxes are due on this settlement?
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Tax Professional Answers
William Keats
All interest on awards is taxable. All punitive damages are taxable except in wrongful death actions.
Examples of taxable legal settlements: Damages for most business and contract claims, damages for nonphysical injuries such as defamation, discrimination, libel, slander; back pay awards and other claims against employers.
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588 weeks ago
Examples of taxable legal settlements: Damages for most business and contract claims, damages for nonphysical injuries such as defamation, discrimination, libel, slander; back pay awards and other claims against employers.