What is the name of your state (only U.S. law)? Massachusetts
I have received a partial settlement of my part in a class action suit against tobacco companies as a survivor (about $5K). My mother was the person named in the suit. I plan on sending the entire proceeds to my father, but am concerned about the tax implications. I file jointly with my wife with gross income around $75K. Can this money be somehow made exempt from tax? What can I do to limit the tax exposure from this and what will my father need to do once he receives it. He resides in Florida and his little or no assets. He filed bankruptcy about 3-4 years ago.
I have received a partial settlement of my part in a class action suit against tobacco companies as a survivor (about $5K). My mother was the person named in the suit. I plan on sending the entire proceeds to my father, but am concerned about the tax implications. I file jointly with my wife with gross income around $75K. Can this money be somehow made exempt from tax? What can I do to limit the tax exposure from this and what will my father need to do once he receives it. He resides in Florida and his little or no assets. He filed bankruptcy about 3-4 years ago.