This money will settle a bankruptcy and non will go in my pocket, If I have to pay taxes on this 42,000 I don't want to sign the agreement they want me to sign to end this lawsuit
2007-09-20 06:10:30 · 3 answers · asked by jimw350 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
Legally it's going in your pocket, it's just coming back out real fast to pay off other debts. It might still be taxable income. Check with your lawyer.
2007-09-20 06:37:06 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Settlements for physical injury or illness are not taxed. Settlements that make you whole again are not taxed either. Without knowing the particulars of your situation it's not possible to say if this will be taxed or not.
If it's not going into your pocket, where is it going?
2007-09-20 14:52:59 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
call a CPA or ask your lawyer
2007-09-20 13:23:28 · answer #3 · answered by Anonymous · 0⤊ 0⤋