Greetings...
I was just awarded $54,000, but haven't received it yet, as a plaintiff in the Bayer Roundup weed killer cancer causing law suit. While not technically a class action suit it is similar I was told. I developed a form of leukemia after using the product for many, many years. As far as I know I get 60% and the lawyers get 40%. Out of my 60% any administrative costs will be deducted (Lawyers.. you got to love them).
So... the $54,000 question is how will I be reporting this on my Federal 1040 for 2021? I assume I have to pay taxes on some part of this. The whole $54,000 or just the actual amount I receive after the lawyers take their cut? Also, what about reporting it on my state 1040 form? I live in New Jersey.
I'd greatly appreciate any help on this matter from the community but especially any CPA's or tax preparers that know the IRS codes about my situation.
Thank you.
