personal injury settlement, under TN state law is a monetary settlement award taxable, civil lawsuit

Damages in Rape Case: Is the monetary settlement awarded in a rape case taxable ? - Is this your question? Add additional information
Answer this question Add to list

Answers (2)

Thuong-Tri Nguyen

Thuong-Tri Nguyen

Contributor Level 9
The recipient of the money should review the facts and options with an attorney. The tax treatment of the money generally depends on what the money is paid for.

In general, money received because of personal injury is not taxable. I do not want to appear gross or insensitive, but rape likely is treated as a personal injury.

Does the settlement agreement specify what the payment is for?
0 0
Robert A. Kraft

Robert A. Kraft

Contributor Level 4
I am not a tax lawyer, but a very broad general statement would be that damages awarded for loss of earnings are considered as income, and therefore taxable. Other damages would generally not be taxable.

You definitely need to consult with an expert in the area of tax law!
0 0
Back to Search Results

Ask a Question

Get free answers from real lawyers.

Top Tax Contributors

1.
Henry Daniel Lively
Contributor Level 7
21 answers, 1 legal guides
2.
Steve Fromm
Contributor Level 7
16 answers, 0 legal guides
3.
No photo
Contributor Level 4
5 answers, 0 legal guides
View all Tax Lawyers on the Contribution Leaderboard