- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
To get that kind of advice, you would need to upgrade to either the Live Assistance or Full Service versions of Turbotax Online. (I should add that no one will download the court docket for you and analyze the case. That's far beyond any ordinary tax preparer's normal terms of service. What they will do is ask you questions about the case to figure out the issues and help explain how the tax law treats different kinds of settlements.)
In general, settlements are taxed according to the kind of income they replace. Lost wages are taxed as wages, punitive damages and interest are taxable as miscellaneous income, and settlements for personal injury are not taxable (although if there is an interest component for late payment, that may be taxable). Can you provide any further information?