settlements from personal injuries
a lump sum distribution by an employer to an employee for personal injuries in lieu of an action reached by a settlement taxable or excludeable from gross income under section 104.the settlement was reached for defamation of character and wrongful dismissal....
1 Answer from Attorneys
Re: settlements from personal injuries
The answer to your question depends upon whether or not the settlement was in lieu of compensation and how and what components it included. Publication 525 from IRS (available on the internet - www.irs.ustreas.gov/plain/forms_pubs/pubs/p52503.htm describes what portions of court awards are taxable. These items include compensation for lost wages (the wrongful dismissal may constitute lost wages) and punative damages.
Depending how the settlement was worded
Walter
Related Questions & Answers
-
Guardianship I have a child living in my home who is not a relative, her parents... Asked 12/07/99, 12:41 pm in United States New York Tax and Taxation Law
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
