Why don't you explain how reimbursement for psyche injuries is tax exempt. This I can't wait to hear. Your entire village awaits your explanation.
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is this taxable income?
- Thread starter terminatedone
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musicman654321
Member
You're right about one thing. I posted nothing really except pointing out the obvious: You're an idiot who doesn't know what he's talking about. Google "origin of claim" and post back with results.
Once again, your definition of idiot is "one who is smarter than me" ...
When you begin attacking people personally, expect the same back. I googled "dumber than an idiot" and found a picture of you as the #1 search return.
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Willlyjo
Guest
Yes, my particular case settled before the laws were modified in 1996, however, just recently, I was present during a mediation hearing in which a case settled by stipulation.
I noticed the attorney did not use language in the stipulation making the settlement non-taxable. Therefore, I told him to make sure the language showed the settlement was for emotional/physical injuries. As a result, the settlement amount was indeed non-taxable.
Further, such amount was not even reported when taxes were done in April of that year.
The bottom line is: If you are compensated for Pain and Suffering and the language in the stipulation (settlement agreement) specifies that fact, then it is NOT taxable!
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Willlyjo
Guest
Why don't you explain how reimbursement for psyche injuries is tax exempt. This I can't wait to hear. Your entire village awaits your explanation.
Why don't you go study Workers Compensation Laws? Why do you think Workers Comp. Settlements are not taxable anywhere? It is because compensation for injuries sustained either physically or emotionally aren't considered taxable income.
Personal Injury and any settlements reached out of court, for sure are not taxable income if such claim(s) are based on Pain and Suffering.
Having said that, if a claim does go to trial and settles, there is a good chance that parts of the settlement can and will be taxable and a judge may very well dissect such settlement accordingly. But as far as settlement before litigation, a stipulation can easily reflect that compensation is for pain and suffering thus, avoiding tax liability!
I've been there and done that a few times so maybe the experts on this forum should do a bit more research and/or talk to someone who can show proof/documents that what I say is factual.
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musicman654321
Member
Maybe ... but its easier to just say "village idiot" than it is to do actual research ... to be ignorant or stupid??? Ignorance has its bliss I guess ...
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Willlyjo
Guest
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Willlyjo
Guest
I guess if the language of a settlement agreement is not determinative, then settlement agreements should not exist!
Honestly ecmst12...do you see how your post reads? I know you were referring to whether compensation was taxable income or not, but ALL settlement agreements ARE determinative in one respect or another.
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Willlyjo
Guest
You're right about one thing. I posted nothing really except pointing out the obvious: You're an idiot who doesn't know what he's talking about. Google "origin of claim" and post back with results.
Hmmm..."origin of claim" speaks about deductions concerning attorney fees.
It has nothing to do with injury claims! Read what Tranquility says in her post! It pretty much lays out what is taxable income and what is not taxable income concerning claims.
Musicman and I pretty much concur on the fact the Op's settlement should be non-taxable based on reasons listed throughout this forum that do indeed show we know what we are talking about. So who is really the idiot?
terminatedone
Member
by this paragraph in my settlement papers it will tell you what i was suing for:
(they are not admitting to guilt, but it shows discrimation for FMLA, emotional distress and physical illness)
in the settlement papers it indicates that they are not admitting to any violations or wrong doing. they also indicated that this release includes, but is not limited to, any claims under the fmla, any claims for any and all damages including damages for emotional distress and physicall illness; and/or any other statutory or common law claims, now existing or hereinafter recognized.
and to anyone that would rather bash people on here for leaving their comment or stating so in so is an idiot should take their opinions elsewhere. we are here for ADVICE and not bashing anyone! people are here to look for answers and to clog up someones response or question is so NOT NICE.
(they are not admitting to guilt, but it shows discrimation for FMLA, emotional distress and physical illness)
in the settlement papers it indicates that they are not admitting to any violations or wrong doing. they also indicated that this release includes, but is not limited to, any claims under the fmla, any claims for any and all damages including damages for emotional distress and physicall illness; and/or any other statutory or common law claims, now existing or hereinafter recognized.
and to anyone that would rather bash people on here for leaving their comment or stating so in so is an idiot should take their opinions elsewhere. we are here for ADVICE and not bashing anyone! people are here to look for answers and to clog up someones response or question is so NOT NICE.
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Willlyjo
Guest
So as all settlement agreements should express, this one covers all possible aspects of your claim. The agreement doesn't pinpoint any one element of your claim but is meant to cover an array of circumstances involving the claim. Therefore, you should be safe in assuming there is no tax liability since compensation is for emotional distress/physical illness.
It would be very hard and arbitrary for the IRS to frame your settlement as taxable income since you maintain it is compensation for your pain and suffering as the agreement does indicate. Good luck.
OP doesn't have a workers compensation claim and workers compensation is specifically referenced in tax law.
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And all this time I thought the smile on your face was due to gas.
Someone has trouble connecting the dots.
Oh you've proven that beyond any doubt.So who is really the idiot?
And as all TAX professionals have noted here, the settlement language is not determinative of anything. The people stating otherwise are those who's posting history indicates a distinct lack of knowledge on all things legal related.
You were given your answer several times.
Captian Picard
Member
Unfortunately, I believe that the query does relate to the settlement agreement; why is the money being provided?
I have asked Cmdr. Data & he agrees ... there is not enough information provided by the OP to make any true determination. You may be able to get an agreement that minimizes you tax liability. The IRS does accept settlement information
Bring your information to an accountant or tax lawyer for clarification.
Listen to davew ?? .... anyone who just argues via name calling usually has a weak position. Maybe it makes dave feel good to do so, who knows.
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