INCOME TAX
2006-10-16 15:34:15 · 13 answers · asked by zigo1995 1 in Business & Finance ➔ Taxes ➔ Canada
No, money awarded in a personal claim doesnt get taxed.
2006-10-16 15:36:25 · answer #1 · answered by Anonymous · 1⤊ 0⤋
They say that, when life hands you lemons, you make lemonade. That amused me until I find myself knee deep in lemons. Before I begin making the lemonade, my natural inclination is to figure out how in the heck I attracted all these lemons! Not only did they stop working pretty quickly, they ended up plunging me into even worse pain. So here I am, contemplating how it was that I attracted all these lemons. Let's start the process there. When there is a situation or circumstance we don't want, the first thing we try to do is to push it away. We get angry, we mentally plot against our perpetrators, and we obsess about what's happening to us. In other words, WE MAKE WHAT IS HAPPENING WRONG. Put the back of your hand to your forehead and get in touch with your Inner Martyr, we all have one. In the history of the world, has the mere fact that something's not right ever caused it to disappear? Unfortunately, the answer to that is "No". Mostly what we want when something undesirable occurs is what used to happen on TV episodes of Superman. We want our super-hero to fly around the earth backwards, causing time to reverse so that we can go back to the time when what is WASN'T. It turns out it doesn't matter one bit HOW I attracted these lemons. They're here and I must deal with them. So the first step (and by far the most difficult) in the lemonade-making process is to simply accept what is. To not accept it is as silly as saying, I know everyone else says it's raining outside but I don't accept it. I don't want it to rain. "I want the sun to be out. I reject the rain." They institutionalize people for that kind of irrational reasoning and yet we often think that way when we're juggling lemons. The next thing to recognize is that eating lemons as they are will not kill us. They taste awful. They make the place behind my ears cramp up in an unpleasant way. But barring a severe allergy, they won't kill anyone. It is just that most of us wouldn't choose to eat them that way. So these lemons I'm standing knee-deep in are not going to kill me. Leave a bitter taste in my mouth. Initially, but even that can be resolved. Sometimes what looks like the worst thing that could happen leads us to a major opportunity. I know people who were laid off of jobs and thought their world would never be right again. A short time later, they found themselves doing work that was a much better fit and in which they were much happier. There is an old expression, "When one door closes, another opens." If we spend too much time looking at the door that closed, we miss the one that is invitingly open. For example, sometimes a relationship will end and we are devastated. But then we discover that we're actually better off without it. We may miss our friend but we are now able to face some of the negative aspects of the relationship we were turning a blind eye to while we were in it. The final step to making lemonade is to be grateful for what happened and the lessons it brought. Anything painful brings lessons with it. Your most important lessons been learned as a result of pain! Once we can be grateful for the lessons learned, we can then drink the lemonade and enjoy the quenching of our thirst. Pain is mandatory, suffering is optional.
2016-05-22 07:55:02 · answer #2 · answered by Anonymous · 0⤊ 0⤋
No doubt, considering tax authorities are among the biggest criminals on planet Earth and always have been. It is a bunch of liberals doing all they can to STEAL a person's hard-earned money and then trun it over mostly to people who don't work or do much of anything productive.
2006-10-17 05:22:01 · answer #3 · answered by Anonymous · 0⤊ 0⤋
ABSOLUTELY NOT.
In Canada, this type of income is NOT taxable and does not need to be "reported". Enjoy the money!!!!!!
Now if you invest this money, any income earned on the investment -- interest, dividends, or capital gains -- will be taxed at the appropriate rates, but not the principal itself.
2006-10-19 08:42:41 · answer #4 · answered by Tiberius 4 · 0⤊ 0⤋
no money gained whether a settlement or winnings does not have to be declared as these are not earnings, however if the funds are invested and you earned interest on the principal then the interest earned would have to be declared as income.
2006-10-16 15:58:36 · answer #5 · answered by glasgow girl 6 · 0⤊ 0⤋
My brother in law recieved a settlement for injuries, and he was not taxed on it. It's not considered an income, so they don't take any of it.
2006-10-16 15:44:13 · answer #6 · answered by Mander 2 · 1⤊ 1⤋
No. Money from legal awards is not considered income, just like collecting on an insurance policy you own.
2006-10-16 15:47:30 · answer #7 · answered by szydkids 5 · 1⤊ 0⤋
It has to be reported. As far as paying taxes on it contact the IRS.
2006-10-16 16:04:19 · answer #8 · answered by Anonymous · 0⤊ 0⤋
I suggest you talk to an attorney,I am going to have a lawsuit for 2 million and I wasn't worried about taxes coz I was harmed and injured for life and I don't think they can for a lifetime injury!
2006-10-16 15:36:48 · answer #9 · answered by happy1here♥ 5 · 0⤊ 2⤋
He/she will be able to keep 1/3 - 1/4 of it the rest will go into various kinds of taxes.
If this is about the Canadian tax system the Canadian gov't won't take much compared to the American Tax system
2006-10-16 15:37:16 · answer #10 · answered by Anonymous · 0⤊ 3⤋