turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Event: Ask the Experts about your refund > RSVP NOW!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

I won a judgement against my ex landlord for money that he owed me. do i have to pay taxes on it? i already paid taxes on it when it was received as earned income.

 
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply

I won a judgement against my ex landlord for money that he owed me. do i have to pay taxes on it? i already paid taxes on it when it was received as earned income.

Judgements and settlements are taxed according to the kind of money they replace.  For example, if this was for a return of your security deposit, then the money is not taxable because you already paid tax on the security when you gave it to the landlord.  Or, if it was for damages to property, its not taxable as long as the amount is less than or equal to the price you paid for the property.  Any amounts more than your actual physical damages or original cost (such as punitive damages, or replacement cost on items) is taxable.  Pain and suffering is not taxable if the original injury was physical, but if the injury is not physical, awards for pain and suffering are taxable. 

 

If the judgement is paid late and includes interest, the interest part is always taxable even if the main settlement is not. 

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies