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    If you win a law suit do you have to pay taxes on the money awarded

    0  Views: 293 Answers: 2 Posted: 10 years ago

    2 Answers

    This depends on what the settlement consist of. Any part of the settlement that is reimbursement for medical expenses or pain and suffering is not taxable. If part of the settlement consists of reimbursement for lost wages, that is taxable. That is because, had you received those wages back then, you would have had to pay taxes on them. It is basically taxable money that you didn't get till after you should have.

    Just to add to Daren's comments:  less attorney fees and expenses first.



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