3428
Shes just grieving! BiGoTs! She spends money as a way to cope with stress! (media.patriots.win) RACIST LEFT
posted ago by KingCraftsman ago by KingCraftsman +3428 / -0
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– DisgustedByMisleadia 11 points ago +11 / -0

It depends on the how the settlement is structured.

  1. Compensatory damages are tax-free
  2. Punitive damages are taxable.
  3. Money for Physical injury and sickness are tax-free
  4. Money for emotional distress ts taxable.

Plaintiffs lawyers working on contingency typically collect 40% of the settlement. But, if any of the settlement is taxable, that 40% that goes to your attorney is taxable for you, and in most cases your attorney's cut is not deductible as legal fees.

https://www.forbes.com/sites/robertwood/2019/07/01/five-key-irs-rules-how-lawsuit-settlements-are-taxed/

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