Do I have to claim a settlement i got from a creditor

[carolinempeppers]

I originally had to pay a creditor $1,600 dollars for an old credit card. That Creditor then got sued and there was a class action lawsuit filed because the company was charging too much and doing some unseemly things. The class action suit against the creditor won, and I received my $1600 back. Do I have to pay taxes on that ?

[DianeW · Accepted solution]

No.  This was a reimbursement to you for money you paid to the credit card company.  The money you used to pay them was already taxed when you earned the money.  

If you had received more than you actually paid then this would be a taxable event, however you did not received any excess compensation for their usury.