Lawsuit Settlement Received

If I receive a check for a small claims case that awarded me $2,750 that I expect in February, do I report it on this year's filing or next years.

posted

If you receive the settlement in 2024, you only report it on your 2024 tax return (next year).

The taxability of the settlement depends on what the settlement is for.

Please read this IRS document for more information.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Unlock tailored help options in your account.