Tag Archives: settlement

The fundamental principle governing the taxability of funds received from the resolution of legal disputes, including lawsuits, adheres to Internal Revenue Code (IRC) Section 61. This section stipulates that all income is subject to taxation unless specifically exempted by another section of the code. IRC Section 104 provides an exemption from taxable income concerning lawsuits, […]

You should be aware if you have been awarded money or damages through a court of law that the fund may be taxable. To figure how if any settlements or judgements are supposed to be included in your yearly income you need to determine what item the money is taking place of. The below items […]