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kjshurer
New Member

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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Accepted Solutions
DeanM15
Expert Alumni

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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**Mark the post that answers your question by clicking on "Mark as Best Answer"

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1 Reply
DeanM15
Expert Alumni

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"

View solution in original post

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