I am getting a settlement , and i need to figure out the taxes on it before i settle .I want to make sure i am getting enough after taxes...I hope someone knows the answer........
2006-09-28 09:49:00 · 3 answers · asked by robynca67 2 in Business & Finance ➔ Personal Finance
The settlement is income whether earned or unearned and the IRS wants to know about it. From last years tax return get your effective tax rate by taking the amount of taxes you paid and dividing it by your total income. Use that rate to get a ballpark for the taxes due on the settlement. This is assuming there would be no major differences, except for the settlement, from year to year.
2006-09-28 11:28:34 · answer #1 · answered by BD in NM 6 · 0⤊ 0⤋
Depends what the settle ment is for.
Most are not taxable because they are not earned income. If it's a settlement over back wages, it might be. Talk to a tax preparer.
2006-09-28 09:57:49 · answer #2 · answered by Anonymous · 0⤊ 0⤋
talk to your lawyer or the IRS, there may be no taxes on your settlement.
2006-09-28 09:51:28 · answer #3 · answered by holden 4 · 0⤊ 0⤋