What is the name of your state (only U.S. law)? CA
I had a lawsuit settled last year for $14,000. My lawyer received the settlement check in Dec. 2008. I didn't get my share (30%) until Jan. 2009.
The settlement was for "pain and suffering", with no specifics as to what type of pain or what type of suffering.
1. Is this settlement taxable? I know for physical injuries, it isn't. But since this settlement was not clear (in the settlement release,) I am not sure what to do.
2. If so, do I report the settlement on my 2008 or 2009 income tax?
3. Do I only report the portion I received or do I need to report the entire amount and deduct the expenses/costs/lawyer fees?
Thank you for you time!!
I had a lawsuit settled last year for $14,000. My lawyer received the settlement check in Dec. 2008. I didn't get my share (30%) until Jan. 2009.
The settlement was for "pain and suffering", with no specifics as to what type of pain or what type of suffering.
1. Is this settlement taxable? I know for physical injuries, it isn't. But since this settlement was not clear (in the settlement release,) I am not sure what to do.
2. If so, do I report the settlement on my 2008 or 2009 income tax?
3. Do I only report the portion I received or do I need to report the entire amount and deduct the expenses/costs/lawyer fees?
Thank you for you time!!
