Law suit income

[bkb1961]

What is the name of your state?Texas
I am getting $50,000 from an insurance setlement case, $25,000 will go to the attorny. I want to give $20,000 to my grandchildren. Is there anyway to eleminate or reduce the income tax I will have to pay? An will I have to pay taxes on the full $50,000?

[I AM ALWAYS LIABLE]

Originally Posted by bkb1961

What is the name of your state?Texas
I am getting $50,000 from an insurance setlement case, $25,000 will go to the attorny. I want to give $20,000 to my grandchildren. Is there anyway to eleminate or reduce the income tax I will have to pay? An will I have to pay taxes on the full $50,000?

My response:

Was this a personal injury case? If so, did you forget about your medical bills that still need to be paid? Or, if paid by insurance, did you forget that you have reimbursable med-pay coverage?

IAAL

[bkb1961]

There was a seperate amount of $10000 that will go to pay for the medical bills directly.

[I AM ALWAYS LIABLE]

Originally Posted by bkb1961

There was a seperate amount of $10000 that will go to pay for the medical bills directly.

My response:

So, you're getting a total of $60,000.00, right?

What comprised the $60,000.00, e.g., actual damages, pain and suffering, lost wages / lost earning capacity?

Also, why is your attorney getting 50%?

Getting answers to these questions, will determine how I respond further.

IAAL