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Deductions & credits
You need to know what the settlement was for. Any settlement for lost wages is taxable as income. You can't take a deduction from that for attorney's fees but you only have to enter the amount that was replacement for wages. If your settlement included an amount for 'attorney's fees' then that portion is not taxable. You will need to get with your attorney and figure out what you received this settlement for.
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‎April 15, 2024
10:36 AM