bonkers101
Member
Texas
I am part of a lawsuit that has settled in bankruptcy courts. Plaintiffs are supposed to receive $________total over a few years (not sure how many years yet), two payments a year.
The damages are punitive and compensatory if that makes a difference, the case was in federal court, then kicked into state court, then defendants filed bankruptcy. It is for abuse suffered as a child.
Question is - what if any taxes are due on such a settlement? And are taxes taken out of lump sum of settlement or each settlement payment over the years?
My attorney said that every state was different on taxing of damages and settlements.
Thanks for any info.
I am part of a lawsuit that has settled in bankruptcy courts. Plaintiffs are supposed to receive $________total over a few years (not sure how many years yet), two payments a year.
The damages are punitive and compensatory if that makes a difference, the case was in federal court, then kicked into state court, then defendants filed bankruptcy. It is for abuse suffered as a child.
Question is - what if any taxes are due on such a settlement? And are taxes taken out of lump sum of settlement or each settlement payment over the years?
My attorney said that every state was different on taxing of damages and settlements.
Thanks for any info.