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During this tax year I received payment as part of class action suit. Payment included gross wage, award and interest. What of this is reportable and where?
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February 14, 2020
10:45 AM
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February 14, 2020
10:45 AM
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During this tax year I received payment as part of class action suit. Payment included gross wage, award and interest. What of this is reportable and where?
For legal settlements and awards, the following is taxable:
- All interest on awards is taxable
- All punitive damages are taxable except in certain wrongful death actions
- Because the gross wages are replacing a taxable item, they are taxable
You can enter the settlement in Other Income. See these directions.
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February 14, 2020
11:24 AM
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During this tax year I received payment as part of class action suit. Payment included gross wage, award and interest. What of this is reportable and where?
For legal settlements and awards, the following is taxable:
- All interest on awards is taxable
- All punitive damages are taxable except in certain wrongful death actions
- Because the gross wages are replacing a taxable item, they are taxable
You can enter the settlement in Other Income. See these directions.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
**Mark the post that answers your question by clicking on "Mark as Best Answer"
February 14, 2020
11:24 AM
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