I received some tax free money in a Personal Injury Settlement. Does it still have to be reported when filing your Taxes? The State is Idaho.
2007-02-09 17:10:48 · 5 answers · asked by Peg G 2 in Business & Finance ➔ Taxes ➔ United States
Settlements for injuries and illness are not taxable. However, if any part of the settlement is flagged for accrued interest, lost wages, or punitive damages, those portions ARE taxable.
2007-02-09 18:18:08 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
You'd pay tax on the gain from any investment that you make with the money, including interest on a CD. Only the initial principal amount comes to you without being taxed.
2016-05-24 21:06:23 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I think income on any ways must be reported. Your income comes under the tax excemption. So u may not pay the tax for that.
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2007-02-09 18:55:15 · answer #3 · answered by Allan H 1 · 0⤊ 1⤋
No it is tax free and is not considered earned income.
2007-02-09 18:01:14 · answer #4 · answered by yahoo 3 · 0⤊ 0⤋
No you do not check with HandR block if you don't believe me.
2007-02-09 17:14:57 · answer #5 · answered by thmsnbrgll 5 · 0⤊ 0⤋