New Member

During this tax year I received payment as part of class action suit. Payment included gross wage, award and interest. What of this is reportable and where?

Expert Alumni

Get your taxes done using TurboTax

For legal settlements and awards, the following is taxable:


  • All interest on awards is taxable
  • All punitive damages are taxable except in certain wrongful death actions
  • Because the gross wages are replacing a taxable item, they are taxable 

You can enter the settlement in Other Income. See these directions.

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