Double Down Settle

That class action income is not taxed. 

Regardless of when the case settles, any settlement is not taxable income to you until the date you are actually paid.

For this specific settlement, because this is a reimbursement of costs you paid to purchase a "product" (in this case, gaming credits), the settlement would only be taxable if you previously deducted your purchases as a gambling or business expense, or if the settlement was for more than you originally paid.  

Thanks I hope you are right.  I just don't know why the irs is holding my return.  It has been 3 months since I filed.  Have you heard of others who received money from the double down settlement?

One other poster mentioned that they received no form from the settlement, probably because it is not taxable. 

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@debbiecply wrote:

Thanks I hope you are right.  I just don't know why the irs is holding my return.  It has been 3 months since I filed.  Have you heard of others who received money from the double down settlement?

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Sometimes, your IRS transcript will have a code on it indicating the reason for a hold.

https://www.irs.gov/individuals/get-transcript

I assume you have already checked "where's my refund" and verified that the IRS has your return in process and has not paid a refund yet?

https://www.irs.gov/wheres-my-refund