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New Member
posted Aug 25, 2024 4:49:04 PM

How do I figure out if my lawsuit settlement is taxable?

It's from a car accident where I was injured but it wasn't very much. Still well below the poverty level if it was counted as my yearly income.

0 2 7789
2 Replies
Level 15
Aug 25, 2024 6:09:46 PM

See the following FAQ. Note that determining whether the settlement is taxable is not based on the amount.


Are legal settlements taxable?

 

Level 15
Aug 25, 2024 9:14:55 PM

If any part is taxable, you list it on your return as either miscellaneous income, or as interest.  Whether you actually pay tax, and how much, depends on your other income and filing situations.