2006-08-16 10:07:33 · 4 answers · asked by Kenz 1 in Business & Finance ➔ Taxes ➔ United States
Any compensation greater than $600 must be reported to the IRS.
2006-08-16 10:12:42 · answer #1 · answered by heffinator 2 · 0⤊ 0⤋
It depends upon whether the lawsuit involved lost income. If you are talking about securities then it depends upon if you still own them. If you do the settlement just reduces your cost basis and is not taxable. If you do not own them anymore then the proceeds are long term gain - assuming you sold them as a long term asset.
2006-08-17 05:32:06 · answer #2 · answered by spicertax 5 · 0⤊ 0⤋
She ought to have gained a 1099-MISC if she isn't an worker except she grow to be as quickly as an worker and that's lower back-wages or equivalent. Is it itaxable however? That relies upon. If it grow to be to replace lost wages or lost somehting else, then it incredibly isn't any longer taxable. no remember if it relatively is lower back pay or some thing comparable, it relatively is taxable. --Discrimination might point out she tried to be an worker, so it relatively is taxable wages in lieu of artwork.
2016-12-11 10:00:13 · answer #3 · answered by ? 4 · 0⤊ 0⤋
it depends on how the attorney righ the settlement and what the settlement was for. If it replaced lost wages is subject to taxation as ordinary income. If it is for pain and suffering it is not taxed..........but trust me it gets much more complicated. If you want to share more info please email me. witchtwo_2000@yahoo.com
2006-08-16 12:40:29 · answer #4 · answered by WitchTwo 6 · 0⤊ 0⤋