That depends on what the money you won is for. According to IRS Publication 17: Court awards and damages. To determine if settlement amounts you receive by compromise or judgment must be included in your income, you must consider the item that the settlement replaces. The character of the income as ordinary income or capital gain depends on the nature of the underlying claim. Include the following as ordinary income. # Interest on any award. # Compensation for lost wages or lost profits in most cases. # Punitive damages, in most cases. It does not matter if they relate to a physical injury or physical sickness. # Amounts received in settlement of pension rights (if you did not contribute to the plan). # Damages for ## Patent or copyright infringement, ## Breach of contract, or ## Interference with business operations. # Back pay and damages for emotional distress received to satisfy a claim under Title VII of the Civil Rights Act of 1964. # Attorney fees and costs (including contingent fees) where the underlying recovery is included in gross income. Do not include in your income compensatory damages for personal physical injury or physical sickness (whether received in a lump sum or installments).
Emotional distress. Emotional distress itself is not a physical injury or physical sickness, but damages you receive for emotional distress due to a physical injury or sickness are treated as received for the physical injury or sickness. Do not include them in your income. If the emotional distress is due to a personal injury that is not due to a physical injury or sickness (for example, employment discrimination or injury to reputation), you must include the damages in your income, except for any damages you receive for medical care due to that emotional distress. Emotional distress includes physical symptoms that result from emotional distress, such as headaches, insomnia, and stomach disorders.
http://www.irs.gov/publications/p17/ch12.html#publink100033109
It depends what the issue of the case is about. If the settlement is in a personal injury lawsuit, there are no taxes. This money is strictly compensation for physical injuries. If the settlement is for back-pay or loss of income lawsuit, then there probably will be taxes.
Welders that do not break the law pay taxes.
You are legally required to pay taxes. Taxes are only due on money you have earned therefore if you owe taxes you have had the money. If you do not pay the taxes you owe you will be sent to court and made to pay - even if you go to prison you will still owe the tax man.
Yes, you will have to pay taxes on any estate money received.
Yes they have to pay taxes on the winnings
No they raise money on taxes
I was told on any money you get from a wrongful death suit you do not have to pay taxes on. Because you are being compensated for something you lost and can never get back. However; you should ask a tax consultant to be for certain, like H&R Block is the best ones to ask and they pay for mistakes that they make so go to them and have them do your taxes for you. Its worth the money you spend for them to file for you. :)
yes you do.
If you inherit money willed to you in the state of North Carolina, you must pay taxes on the money. Inheritance taxes are more than regular employee taxes.
a synonom for taxes is pay or give money
Taxes and money gathered from crimes pay for law enforcement courts and prisons that deals with violence.
This will completely depend on what kind of law suit it is and what the damages are for in the award as determined by the court. If it was a loss of income you may have taxes on the award or on part of the damages. If it was for an permanent injury you may not pay any taxes at all for the award. I will tell you that you will need to hire a professional accountant to do your taxes with an award like this.