I received a Settlement payment as a Judgement Class Member in a class action lawsuit Rodman v. Safeway, Inc. for $804. Do I need to report it as income on my tax return?
021187
2 Replies
macuser_22
Level 15
Apr 25, 2020 5:15:03 PM
It depends. Generally not taxable unless you previously deducted the loss.
If it is a reimbursement then you already paid tax on the money and you are just getting some of it back. Punitive damages that are in excess of any loss are taxable income.