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Tax info...

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I am FINALLY getting a settlement due to a friends' accident.
I was the "caregiver" for her and her children. She had to stay in my home and of course, the kids as well.
She was down and out on the couch. Period. I even had to help her lift her head up so she could sit up. I cooked and feed her. EVERYTHING. Everything for her kids too... Which I would do anyday ~ anyways...

She retained an attorney. With the attorny's advise, I put together a bill. I billed for 24 hr care for her and the boys.
Finally, two years later the insurance company is settleing. I billed for $5200.
The attorney called today letting me know that it's settleing and I can expect to recieve a check within a month.
She also asked, because they aren't offering as much as first thought was coming, if i'd take a lower amount as my settlement. I said yes, because it would mean MORE for my friend. She's the one hurt. And she could use it to turn her life around... Anyways, I'm getting only 4500.

How much taxes and WHEN will they hit? I'm not sure what to expect. Should I set aside a bit of the money for future taxes?
 


Snipes5

Senior Member
Set aside 25% of the money for taxes. The taxes will be due generally speaking by April 15 of the year after you receive the money.

For specific details, see a tax professional who can advise your more thoroughly.

Snipes
 

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