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settlement payment

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tracey41

Junior Member
What is the name of your state (only U.S. law)? Pennsylvania
I received a settlement paymet in 2007. While I was working for this company I became very ill and my doctor removed me from the job. He felt my job was to blame for the illness. I resigned under doctors advise. After a time I sued the company for what they had done to me. I was granted some of the money although not what my lawyer going after. He told me in the beginning that this was more of a medical case. I thought it was more of a discrimination case. When the case was settled he told me to contact him and he would send me a letter to send in with my taxes that the settlement would not be taxed. This lawer was upset that we did not get more and was blaming my statements and my doctor. We had words and that was it until I called him about the tax letter. I received the letter and in it said 50% taxed and 50% not tax. I called him and was told I am never happy and should be happy I got what I got and hew hung up on me. No contact since. Did taxes according to letter. I recently was told that at the top of the letter it is in his opinion.
Can I redo my 2007 taxes based on medical with no taxes having to be paid. I have someone doing my taxes this year and was told if I could get something in writing he would redo my taxes for 2007.

Did I have to use this letter at all?
Can my 2007 tax return be redone?
 


davew128

Senior Member
Quite honestly, I see nothing to indicate it wasn't entirely taxable in the first place, based on the scant information provided. The letter IMO is worth squat unless it explains EXACTLY what the settlement is for, not how it is to be allocated "for tax purposes".
 

tranquility

Senior Member
I completely agree. Also, there are many times where settlements come on the forum and we give a quick answer as to if they are taxable or not. But, every time I've gotten one in real life at the office, it seems to take a bit of research and some communication with the attorney to resolve.
 

tracey41

Junior Member
There is nothing in his letter that states exactly what the money was for.
Attorney fee off the top then the 50/50 as stated.
Should I ammend my 2007 taxes?
Tax attorney needed? Advocate?
 

tranquility

Senior Member
See a tax professional. It's not a big deal, it shouldn't take that much of his time to help determine the proper reporting of the settlement.
 

tracey41

Junior Member
Thank all of you for help. I have been dealing with lawyers for 10 years of my life because of unfortunate times I have had. I just wanted to hear an answer from someone who was not benefiting from me. There are many situatuons that can be taken care of without an attorney and $$$$$$$ thanks to sites and people trying to help other people. Lawyers need to understand that!!!!

Thanks again!!! Input is still appreciated. I like to hear about others thought process. Most of the situations I have been involved in were up to the interputation of the lawyer reading the law.


GOOD THINGS HAPPEN TO GOOD PEOPLE IN THE END.
 

LdiJ

Senior Member
Thank all of you for help. I have been dealing with lawyers for 10 years of my life because of unfortunate times I have had. I just wanted to hear an answer from someone who was not benefiting from me. There are many situatuons that can be taken care of without an attorney and $$$$$$$ thanks to sites and people trying to help other people. Lawyers need to understand that!!!!

Thanks again!!! Input is still appreciated. I like to hear about others thought process. Most of the situations I have been involved in were up to the interputation of the lawyer reading the law.


GOOD THINGS HAPPEN TO GOOD PEOPLE IN THE END.
You really do need to see a tax professional. A professional would have to read your settlement in order to determine whether or not some or all of it is taxable.
 

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