2007-01-27 13:00:34 · 3 answers · asked by crazy b 3 in Business & Finance ➔ Insurance
IN the US, proceeds from any lawsuit are considered earned income & are taxable at your normal rate for both federal & state income tax.
Any unreimbursed expenses related to the suit may be deductable.
2007-01-27 14:26:23 · answer #1 · answered by SantaBud 6 · 0⤊ 0⤋
I don't have reason to believe any different from the answers above but that surprises me. I know settlements for injury or cars that don't go through the court are not taxable so I am not sure what going through the court does to all of the sudden make it taxable.
2007-01-28 08:59:04 · answer #2 · answered by mamatohaley+1 4 · 0⤊ 0⤋
All judgements from legal proceedings are taxable.
I have several judgments and they were all taxed.
2007-01-27 21:08:54 · answer #3 · answered by A_Kansan 4 · 0⤊ 0⤋