Am I understanding this correctly: since the amount of the settlement, in 2020, was only about 20% of what we paid for the brand new/fair market value of the “Lemon” car in 2019, then we do not have to report this as income on our Federal Taxes? Or just the opposite?
I’m still a little bit confused regarding our obligation. Do we have to report this or not? If so, where and does that include the total amount received, even what we paid the attorney who received the entire amount and then sent us a check for our percentage? It will cut our refund in half. Sorry for not “getting” this.
