2007-05-17 07:39:07 · 5 answers · asked by msmullen1986 1 in Business & Finance ➔ Taxes ➔ United States
Generally speaking, most lawsuit awards will be taxable with the exception of personal injury claims.
2007-05-17 07:45:36 · answer #1 · answered by Tax Man 2 · 1⤊ 0⤋
The fact that the lawsuit is class action make no difference. Some lawsuit awards are taxable and some are not. Inmost cases, at least part of the award is taxable. The general rule is that if you would have paid tax for whatever the award replaces, the award is taxable. I have 'won' half a dozen class action suits. I have yet to see one where my share was worth the time required to claim the award.
2007-05-17 11:43:16 · answer #2 · answered by STEVEN F 7 · 0⤊ 1⤋
In most cases they are taxable, with the exception of personal injury lawsuits.
2007-05-17 07:46:52 · answer #3 · answered by Anonymous · 0⤊ 1⤋
Portions may be depending on what the lawsuit is about. Any portion that applies to earnings is usually taxable.
2007-05-17 07:42:30 · answer #4 · answered by CarbonDated 7 · 0⤊ 1⤋
To the point that they exceed compensatory damages.
2007-05-17 07:46:54 · answer #5 · answered by LORD Z 7 · 0⤊ 2⤋