Taxable winnings

[Gary Cisneros]

My wife recently won a law suit! Is it considered taxable income, and if so how much should I expect to pay in taxes, i.e. percentage.

 

[Taxguy]

It depends on the nature of the lawsuit and the nature of the award.

 

[Gary Cisneros]

re; your question on type of law suit

Thanks for you reply, it was a lawsuit for one of the famous diet pills.

 

[Gary Cisneros]

Almost Forgot

Taxguy, I almost forgot,......a six figure value was awarded as a settlement

 

[Taxguy]

Payments for personal injury and bodily damage are not taxable.