In a motor vehicle accident, I received a settlement for personal injury. Is the portion that is noted as wage loss/medical to be claimed on my income taxes as other income? Is it the full amount and what documents do I attach to support it?
2007-01-14 15:03:42 · 3 answers · asked by IAMGODD 2 in Business & Finance ➔ Taxes ➔ United States
Compensatory payments are not taxable. The amount for punishment to the defendant is taxable.
2007-01-18 14:42:31 · answer #1 · answered by WealthBuilder 4 · 0⤊ 0⤋
i don't believe of he reported that. the position's your source? in case you're speaking about the properly a million or 2% of earning, those are not any further wages. funding earnings isn't an same element as wages. in case you want an more advantageous portion of the inhabitants to pay some federal earnings tax, per chance you should recommend taking away kid deductions. i imagine the concern isn't that the better earnings persons do not pay their justifiable share of taxes yet that too a lot wealth is going to the properly quintile. Our tax code desires to be overhauled so as that organizations would have the motivation to make capital investments fairly of paying out huge dividends and multimillion dollar salaries to administration. We also could undergo in concepts that even as earnings tax is progressive, which skill the more suitable you're making the more suitable you pay, different taxes are regressive, which skill the poorer you're the better share of your earnings is going to those taxes. Examples are gas tax, application taxes, property taxes (as portion of lease), and sales tax. In Mississippi, even grocery staples like bread and milk are taxed!
2016-10-31 03:13:59 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I don't think you have 2 claim it cause U already paid taxes on this ask your lawyer he'll know.Good Luck
2007-01-14 15:12:06 · answer #3 · answered by sugarbdp1 6 · 0⤊ 0⤋