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Do i have to report lawsuit money on income tax return? answers (163099)

People haved asked the following law querstions similar to "do i have to report lawsuit money on income tax return?". If you have other legal doubts, use the box above to get answers.

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After I Filed for Divorce I Found Out my Husband didn’t report all of his income on our tax return, Can I be Held Responsible?

A:  “I filed for divorce due to verbal abuse towards my daughter and myself and physical abuse by his drunkenness. Now I find out he did not report “cash” income he received from a lawn service he has been doing for a few years. He submitted our tax return online so I never seen the form to realize this. There is no signature on the form due to the online process. What is my chances of holding him responsible to pay the IRS without me being involved as I had no idea he did this?” Ordinarily, both spouses are jointly and severally liable for any shortfall in tax payment on a joint return. The IRS has a provision for an...

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Can A Landlord Make A Negative Credit report For money Owed Damages Even If There Is No Judgment?

A:  Credit reporting is not predicated on the filing of a lawsuit. If you owed money for damages, back rent, etc., the failure to pay can be reported to your credit....

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Does compesation lawsuit money from an injury count as child support

A:  Yes, while settlement money for inuries is not taxable, it is reportable as income when child support is being determined. File for an order modification and ask the court to consider her settlement....

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How Can I Save money on My taxed income?

A:  Kevin McCormally explains how depending on your income, the earned income credit could save you money. Powered by 5min...

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Do I have to pay income tax on the money I get from a life insurance policy?

A:  There will only be income tax on any interest earned after the deceased person''s death. You may have Ohio estate tax depending on who is named as the beneficiary of the policy. If the policy is payable to the estate than Ohio estate tax is due. If the policy has a named beneficiary then the proceeds are exempt from Ohio estate tax....

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How do I report dividends and interest income?

A:  All payers of interest income are required to send you a Form-1099 INT, giving you the amount of interest income you need to enter on your tax return. If your Form-1099 INT is overstated, subtract the amount of overstatement and report the corrected amount on your tax return....

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If my IRA or 401(k) tax-deferred money is transferred upon my death to a marital bypass trust -- a trust to decrease the estate tax that eventually has to be paid by my children -- does income tax on the amount transferred become due immediately or can the money continue to accumulate, tax deferred, until withdrawn from the trust?

A:  No one can avoid Uncle Sam forever -- although you can delay his visit upon you and yours by setting up a trust such as the one you describe. (To learn more about estate-tax reducing trusts, see tax-Saving AB Trusts.) Distributions from a tax-deferred retirement plan, such as an IRA or 401(k) plan, are taxable in the year of the distribution. As long as the assets remain in the plan, however, they remain tax deferred. That is the basic rule. When a trust is named beneficiary of a retirement plan, it does not mean the assets of the retirement plan are all distributed to the trust when you die. It means that whenever the assets do come out of the plan, they must go...

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I was my father''s power of attorney. He died Jan 2005. Six months before he died, he moved from one nursing home to another. I never heard a word from the first home. Then, this past spring, the nursing home took my state tax return. They claim I owe a large sum of money to them. Why then, did they not contact me in the past four years? My questions are, am I responsible for this bill? And do they have to right to take my tax return?

A:  Just because you served as attorney-in-fact for your father does not mean that you''re legally bound to pay his bills - unless, of course, you signed a guaranty or some other kind of contract. I don''t understand what you mean that the nursing home ''took your state tax return'' unless they are somehow involved in an action to show that there was some kind of fraud. Absent such a determination, while they might have a claim against your father''s estate, I don''t see how they can come after you. Perhaps they are just trying to scare you into paying. You don''t mention whether you served as the executor or administrator of your father''s estate, or if he had any assets. In order to avoid a lawsuit now, it might be...

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I discovered that my ex-husband had a ''trading account'' in his name only without my knowledge for the last 10 years of my marriage. I have documentation that he that he made a ''significant profit'' from trading during the year I was divorced (1999) but never disclosed anything about this. In fact, he only showed that his business had debts.(Written on a piece of paper by his accountant, never producing tax returns.) I have ''4'' children and sole custody but have had to declare bankruptcy because of my ex-husband''s actions. He signed my divorce decree stating that he made full and complete disclosure of all of his assets, which I now know is a lie. Can this be re-opened as well as prosecuted for fraud? I supported my entire family and his practice throughout the 16 yrs of marriage by extremely long hours of work and every month after paying all our bills I was threatened by him if I did not give him all the money left in my business account. It appears that this money was put into this ''hidden'' trading account while keeping his business in debt. Can something be done? Thank you

A:  Absolutely, something can be done. If you have documentation, your husband ''made a significant profit from trading during the year'' of your divorce and failed to disclose, you have an opportunity to challenge the divorce terms based on this fraud. Of course the amount of monies you are entitled to depends on the month the divorce was final and the months during which he earned the substantial amount. If you were divorced in January and his gains on the account occurred from June to December, later that year, you are not entitled to these additional monies. His failure, however, to disclose any trading account gains during the ten (10) years of marriage constitutes fraud, and are grounds for you to contest the terms of the divorce. I am surprised a judge permitted the divorce without his...

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If a credit card company charged-off the debt on my deceased husband''s account, do need to report that as taxable income?

A:  Your message is light on facts so I will need to make to make some assumptions and guesses about your circumstances. Notably missing for your message is your state of residence and the disposition of the debts during the probate process for your husband''s estate. Deceased spouse''s debt Some people assume a decedent''s debt is forgiven or possibly written off by creditors. The law does not work that way, with the exception of federal student loans. However, spouses or other relatives are not responsible for the decedent''s debt automatically, either. Many collection agents take advantage of a debtor''s grief and ignorance of the law to imply the family must pay the decedent''s debt, but that may not be the case. When a person dies with a will, the will controls the financial affairs of...