Today TaxMama® hears from Craig in the TaxQuips Forum with this question. “In 2012 we received two class action settlements – one for our primary residence [~$3500]; and one for our rental [~$2700], both in the same development. These were for mold/painting deficiencies. The question is: are they taxable or non-taxable?
Today TaxMama® hears from Peter in the TaxQuips Forum with this story “I have just settled an attorney malpractice litigation where a small settlement was received. The insurance company wants my Social Security Number, which I feel is not needed. My position is that I am only recovering a fraction of what the attorney was […]
Today TaxMama® hears from Ken in the TaxQuips Forum with this happy news. “Several years ago I worked for a company that ran out of money and couldn’t make payroll. I continued to work for several months with the promise that the wages would be paid. Eventually, I requested a layoff and left the company. […]
Today TaxMama hears from Lenora in Arkansas, who tells us. “Some friends of mine lost their mother due to taking the drug Vioxx® . She died due to complications from taking the drug. Her sons filed suit and are due for a pretty good sum of money. Is that settlement money taxable?”
Today TaxMama hears from Robin in Florida, who is getting divorced. “I am getting a house settlement as part of my divorce and I am not sure if I need to reinvest into a home? Or will I to have to pay taxes on the amount?”
Today TaxMama hears from Angela in Michigan who tells us. “We were the victims of a sewage backup in 2000. There was a class action lawsuit and we were finally awarded, almost $10,000 for property damage. I cannot find a clear-cut answer whether or not the settlement is exempt from income tax. “
Today TaxMama hears from James in Texas, who tells us, “My father died from lung cancer from working in chemical plants. I am receiving out of court settlements from several of the companies he worked for, and several more to come. Is this money taxable? If so, what type of income, and what is the […]