Do I have to pay taxes on money from a lawsuit?
78691
If the lawsuit specifies that the money is to be used for non-taxable items, like attorney fees paid in, retirement, medicare/social security, or if it specifies those items that can be sheltered, then you don't pay taxes on those.  H&R Block says awards for pain and suffering/mental anquish aren't taxable, but the IRS said they might be but that a specific BREAKDOWN of all amounts and categories by the court or legal agents must be done for the IRS to know what parts are taxable and which are not.  Reimbursements for salaries, for instance, is taxable.
575785
Income is taxable.\n\nYou will receive paperwork along with your settlement (probably a 1099-Misc or similar) that will give you the info you need to determine how to handle the money, taxwise.\n\nGood Luck!
974786
You still need to file, and would be better if you do it before they contact you (and if you had income that was reported, they will eventually, by which time you'll owe even more in interest and penalties.\n\nYou should always file even if you don't have the money to pay.  If you can't pay right away, they'll set up a payment plan, and yes, you'll be charged interest.\n\nYou're not going to be in some kind of major trouble, so don't worry about that.  Just go ahead and file, or contact the IRS and tell them your situation.  If they get your return without a check, they'll contact you to set up a plan to pay.
851412
I don't understand how my tax money would be involved if they sued anybody.\n\nAnyway, I think if they are in the country illegally, they should be arrested on the court steps on their way to the trial involving their suit - along with the employer who hired them and the dirt bag lawyer representing the employer.\nThis nonsense has gone far enough.......
988724
From the little bit of information you've provided, it is your personal income and you should pay taxes on it. \n\nAdditionally, if the supplier is going to issue a 1099, that would be because you are not a business. A 1099 would normally only be issued to an individual, or because a company does not provide appropriate Federal Tax ID information.\n\nBut to answer your question, about the only way to get the money out of the "business" without having to pay taxes on it would be as a re-payment of monies that you've loaned the "business"
124316
Workers Compensation payments are NOT taxable, therefore you do not have to pay taxes on any income received as a Workers Compensation payment.
171738
It is quite possible but how the court ordered judgement was written can impact how the monies owed are collected.  In any case, if you have a judgement against you and money such as tax returns come to you, pay the judgement.
161090
It depends on if you had to file or not. I'm fairly sure if you make over $7000 or so you have to file as a single person. Then, if you still owed tax with the filing that you didn't do, then there could be legal consequences; however, if you overpaid on your taxes (by employer withholdings)then you would have no "trouble" buy you have been screwing yourself out of some $$$. In either case, you can post-file all years in question with varying forms from http://www.irs.gov (great site by the way) and find out if you did owe or were owed $$$. Now, if you owed them, they will charge you penalties and interest for the back payments not to exceed a certain amount annually (I forget what the max is, but I'm sure you can look it up on their site easy enough). BUT, if they owed you a return for those years, then you can still file for those years and they will pay you back your refund with interest (minimal interest, and you will have to claim that interest as income on next years taxes too). All the answers should be easily found at the IRS web.\n\nGood Luck!
613288
You have to consult with a lawyer.  Generally, if they take your case, you will not have to pay any fees, because they will expect to get money for you from suing an insurance company.
1141202
no u can't u are subjected to pay taxes wherever u might go or which state u settle in. paying taxes is all part of assisting the government in rendering us services, so without taxes u wouldn't have the necessary help from the govern.
210271
The only legal fees you can deduct from your taxes are fees pertaining to taxes and legal fees for your business if you have one. So the answer is no.
1169610
Generally, they are fill in the blank forms, but, honestly, if you are having a hard time with that... please rethink representing yourself.  I'm not saying that to be mean in any way, but if you don't follow the court rules specifically, your suit will be thrown out.  If your suit is considered frivolous by the court, you could also end up paying the other side's legal fees.
620354
You will have to pay income taxes but not sales tax (although that will depend on your state).  Good luck.
1031441
If you don't pay the back taxes they will have to . Or get prove that all taxes are paid then take them to small claims court
343767
The above answer is blatantly false. The IRS taxes all lawsuit awards and settlements not for physical injury or disease, and even for those awards, they tax all punitive damages and interest. Legal fees are to be deducted from the award.
939503
None. Too must money to be made in taxes and "settlement" payments.
797994
Ask your attorney.  Thats what you pay them for