QUESTION
Is a Release and Settlement Agreement taxable?
Asked on Dec 20th, 2014 on Civil Litigation - North Carolina
More details to this question:
I am going to receive two payments in settlement of a lawsuit, one this year and one next year. Are these payments taxable?
1 ANSWER
That depends what the payments represent. For example, if the payments represent a settlement of a claim for unpaid wages, they are taxable; if they represent settlement of damages from pain and suffering, they are not taxable.
Answered on Dec 22nd, 2014 at 1:25 PM