Do you have to pay taxes on a mass tort judgment?

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Do you have to pay taxes on a mass tort judgment?

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2007-06-07 16:23:54 · 2 answers · asked by bubey2002 2 in Business & Finance ➔ Taxes ➔ United States

2 answers

Judgements for physical injury or illness are tax free. However if any portion was earmarked for lost wages, interest, or punitive damages that portion is fully taxable as ordinary income.

2007-06-07 23:19:29 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋

general rule is that if it is from a personal injury no but speak to the lawyer that settled the case for you.

2007-06-07 23:50:51 · answer #2 · answered by ainger452 3 · 0⤊ 0⤋