QUESTION
Will we be required to pay income taxes on the settlement?
Asked on Feb 09th, 2015 on Taxation - Ohio
More details to this question:
We are expecting to receive a court settlement from an Ohio law suit. The money may become available in October. We now live in Ohio, but have just purchased a home in Florida. If we move to Florida in April, will we be required to pay Ohio income taxes on the settlement?
1 ANSWER
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Whether income from a settlement is taxable depends on the nature of the claim in the lawsuit. If the lawsuit is for a physical injury, for example, a broken leg in a car crash. Then the funds are generally not taxable. If the lawsuit is for any other reason - mental distress,discrimination, breach of contract. Then the funds are generally taxable.
Answered on Feb 11th, 2015 at 3:23 AM