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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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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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"

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