I received an award from US Victims of State Sponsored Terrorism Fund. My attorney received his 25% and I received my award. Is this money taxable?
The money came from a lawsuit, because my brother was killed on 9/11. Is this money still tax-free?
Is there a ruling from the IRS on this, or something else in writing that we can rely upon?
Awards from this fund are for personal injury and are not taxable.
I am curious to know if you were part of just round 2 of the distribution, and if you in fact received 5% of the 8.5 million judgement? Did you receive this payout right at the beginning of January? When were you notified what amount you were going to receive? Did the money go through an account set up by your attorney?
Hi , I am the daughter of a 9/11 victim . I am wondering if you ever received an answer to you question as I have the same tax question and no one seems to know the answer
Hi, did you ever get a response on this. I am wondering the same.
According to the United States Victims of State Sponsored Terrorism Fund, this money is paid out as compensatory damages for victims of terrorism. In a wrongful death case, the damages are caused by personal physical injuries, which the IRS does not tax. As MinhT responded above, this money isn't taxable. I'm sorry for your loss.
Thk u.... i wonder if the same hold true in a state level ??? New york? Thank you for your condolences.❤
You're welcome. Yes, NY has the same rules relating to personal injury settlements.
In response to your posting be advised of the following: My late parents were residents of New Jersey. Their Estates received payouts from the US Victim's of State Sponsored Terrorism Fund due to the loss of a family member on 9/11. The New Jersey Division of Taxation taxed the funds received (Estate Tax) because they claimed there was nothing specifically mentioned about this fund in IRS Publication 3920. So be advised that payouts from this fund may be taxable in certain situations.