would be taken out if I got a settlement of $760,000?
2006-08-31 08:20:22 · 6 answers · asked by nisanch 1 in Business & Finance ➔ Taxes ➔ United States
That depends on your location. Usually about 1/3 will be taken. Assuming 1/3 is taken, that would be $250,800 for tax leaving you with $509,200.
2006-08-31 08:27:13 · answer #1 · answered by Eggdrop 2 · 1⤊ 0⤋
The taxable portion of it, if any, will be taxed at your ordinary income tax rate.
Not all of the $760,000 might be taxable
If it's an insurance settlement, only the amount in access of the loss is taxable.
For the court rewards for damages please read the following from IRS Pub 5025
Court awards and damages.
To determine if settlement amounts you receive by compromise or judgment must be included in your income, you must consider the item that the settlement replaces. Include the following as ordinary income.
Interest on any award.
Compensation for lost wages or lost profits in most cases.
Punitive damages. It does not matter if they relate to a physical injury or physical sickness.
Amounts received in settlement of pension rights (if you did not contribute to the plan).
Damages for:
Patent or copyright infringement,
Breach of contract, or
Interference with business operations.
Back pay and damages for emotional distress received to satisfy a claim under Title VII of the Civil Rights Act of 1964.
Attorney fees and costs (including contingent fees) where the underlying recovery is included in gross income.
Do not include in your income compensatory damages for personal physical injury or physical sickness (whether received in a lump sum or installments).
2006-08-31 11:31:22 · answer #2 · answered by Tanya E 2 · 0⤊ 0⤋
In order for us to answer that question properly, we'll need to know which state you're in, your marital status and most importantly, what kind of settlement it is. It probably is a taxable settlement, but there are a few types that aren't. Could you re-post your question so you can get more accurate answers?
2006-08-31 09:07:16 · answer #3 · answered by SuzeY 5 · 0⤊ 0⤋
Depends on what kind of settlement you're talking about. Go to H&R Block and find out. If it's personal injury, that is non-taxable.
2006-08-31 18:24:15 · answer #4 · answered by ami 3 · 0⤊ 0⤋
6 cents a dollar times that
2006-08-31 08:24:46 · answer #5 · answered by mommy to be 4 · 0⤊ 0⤋
y do u pay taxes ... in my country we don't
2006-08-31 08:28:37 · answer #6 · answered by CrAzY LoVeR 2 · 0⤊ 0⤋