Ask Experts Questions for FREE Help !
Ask
    mystique3790's Avatar
    mystique3790 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Feb 8, 2008, 04:34 PM
    How much tax on settlement?
    Last year my mother received a settlement after suing her employer of $11 thousand dollars. How much tax will she end up paying the IRS for this? We received a 1099 for it and live in AL. Thanks
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Feb 13, 2008, 02:35 PM
    Since it probably replaced lost wages, the setttlement is considered taxable.

    Enter it on Line #21 of Form 1040 as "Other income".
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Tax for F-1 visa on OPT with tax treaty, resident alien for tax purpose [ 2 Answers ]

HI--I have multiple "identities" with regard to tax: 1. I'm an F-1 visa holder 2. I'm on OPT from Sept.2007-Aug.2008 3. I have benefits of tax treaty, under which I can be exempted from federal taxes up to $5000 a year for wages, and unlimited amount for fellowship 4. I'm a resident alien for...

Form 1116, foreign tax credit: Tax paid vs tax accrued, exchange rates and dates [ 2 Answers ]

Hi, I'm applying for foreign tax credit on taxes I've paid / accrued on interest earned in savings accounts and certificate deposits in New Zealand. For cds, the bank statements don't give precise dates for when taxes were withheld. And so I have several questions relating to form 1116, Part II: ...

Auto Accident: Damage Settlement not Injury Settlement [ 13 Answers ]

Hello all and thank you in advance for your kind answers. My Girlfriend was involved in an accident in November. Here are some key points about the event. 1. Accident Fault - Fault was clearly the other driver Documented in the Police report. 2. Vehicle is currently financed - In both of...

Settlement [ 1 Answers ]

My husband is getting a settlement from a pharmisuitcal company. He is on S.S.D. He is not good with handling money,so he wants to sign the check over to me. I will than deposit to my account. MY question is this, This settlement was granted to him because he almost died from medication. This money...

View more questions Search