Legal Question in Tax Law in New Jersey

Lawsuit Settlement question

I know that settlements are not taxable but is interest derived from settlements taxable?


Asked on 2/04/06, 5:24 pm

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: Lawsuit Settlement question

You may be incorrect that settlements are not taxable. The taxability of the settlement depends upon what was the claim. I suggest you provide more information for a better response, or check the IRS web site for more information, looking at the types of settlements that are taxable and those that are tax-free. In all events, interest is taxable.

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Answered on 2/05/06, 1:10 pm


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