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How many taxes will be taken out of my lawsuit settlement? answers (54092)

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Q: 

I Paid Off A Credit Card Debt As A settlement, Am I Responsible For The Balance

A:  It is hard to say what the debts were. If you receive a 1099, then your have to pay the taxes. I think you will not and do not have to pay the taxes. I think this is regarded as a settlement like any other. I think that some types of settlement like this it is regarded as income. This mostly happens with real estate....

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Release of claims severance payment and taxation

A:  Call it whatever you like, but severance pay is still employment income even if you didn't sign a release of claims, and all that stuff gets deducted. Why would you even think that it wouldn't be deducted when fed and state tax was? Contributions to the pension have nothing to do with the other stuff. The pension thing is strictly up to the company to decide. That you feel dumbfounded means only that you should have addressed the taxability issues before making the settlement agreement. You might have been able to structure and charactize the agreement differently and gotten checks issued separately for various items or out of the company's expense account instead of payroll. Too late for all that now. I suspect your W-2 at the end of the year will...

Q: 

My C&R situation

A:  In a Stipulated Award the PD is paid out bi weekly, and the medical is left open for life,... In a C&R you are signing away all of your benefits to this claim, including future medical. A lump sum is paid and covers all issues. You cannot re open a claim settled by C&R... IF you are signing a C&R settlement, you will get the lump sum, otherwise the payments will be made over time. In essence, you can't have cake and eat it too...(not normally anyway...) At the time of the Stipulations, you can ask (petition the WCAB ALJ) the judge to commute your PD..it is possible, for good reason. If you do this, the amount will be reduced to "todays dollars", by law a reduction of 3%, but it could be more than that. Here is the Petition to Commute...

Q: 

He skipped out on his job...Illinois/Florida

A:  First you have to decide how much you are willing to investin this. If he really wants to make a career of avoiding child support, he will. It's pretty simple to have enough taken out of your checks that you don;t get a tax refund. If he ignores a court order, driving without a licesne isn;t going to phase him. There is no statute and his arrears will continute to mount as the years go by. For him ... there's really no way to get out of what he owes. If you have the ability financially to go after him, then you should file contempt. Because the support system is so back logged, it's really up to you to keep hounding him and keep dragging him back to court. If you just let it go you would basically be letting him off the hook. He's making your...

Q: 

Cancellation of Debt laws?

A:  Your debt was not canceled. It was ''charged off'', which means the creditor has decided it''s not worth his time or expense to continue to try and collect. Therefore, he has taken a bad debt write off, allowing him to get a tax break. It sounds like they took a settlement on the account and you got a 1099 for the balance you did not pay! If this is correct then the line item should show CHARGED OFF then the notation SETTLED FOR LESS THAN FULL PAYMENT. Call the creditor and bring it to their attention. Also challenge it with the 3 credit reporting companies. If that does not work then you can seek out the FAIR CREDIT REPORTING ACT! They must report honestly the status of your accounts....

Q: 

Are civil lawsuit settlements taxable?

A:  On One Hand: Civil Law Suite settlements May Be TaxableCivil lawsuit settlements related to employment will be taxable to the extent the settlement involves back wages or salary. Any portion of a settlement that can be deemed as income will be taxable, and Social Security, Medicare and income tax may be due....

Q: 

Is Compensation From an Asbestos lawsuit Taxable?

A:  Many people who have just gained compensation from a lawsuit wonder if the money awarded to them will be taxable. Use this guide to help you understand the basics of compensation tax law and how it will affect your Asbestos injury claim lawsuit settlement amount. Physical Injury Claims Most of the funds recovered from a physical injury claim case will not be taxable. While it is safe to assume this as a general rule of thumb, it is important to consult your personal accountant for the details of your funds. The rules of taxation will differ based on many factors, including what type of claim was filed. Even within a specific case area, such as Asbestos injury, there are many types of claims that can be filed and...

Q: 

How does american wills work for foreign citizens?

A:  1. Citizenship has no bearing on the benefactor 2. Jack may leave his assets to whomever he wishes. His parents may contest the will, but if it is a valid will, then they can not claim any ownership based purely on their relationship. 3. Depends upon the size of the estate, and which state he resided. All taxes are paid from the estate prior to settlement 4. Again, depends upon a number of factors. If the will is contested, it could take years. (Remember, Anna Nicole Smith and her former husbands son are both dead, and that will is still in court) Also depends upon the speed of the executor, and the complexity of the estate. Could take as little as 6 weeks, could take 6 months or longer. Where the beneficiary lives makes no difference...

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Is using a debt consolidation service a bad idea if you currently rent and would like to buy a house within 2 years? What woul

A:  There are many forms of debt relief, including: i) debt consolidation loans, ii) credit counseling, iii) debt negotiation, and iv) bankruptcy. In your case, the only solution that will not impair your credit profile is a debt consolidation loan. Debt consolidation can benefit you in many ways: i) monthly cash flow, ii) total savings, iii) interest deductibility, and iv) your credit rating. However, all forms of debt consolidation are not the same. You need to consider your specific situation, including if you own or rent your home, your monthly debt to income ratio, and your credit rating. A program like a debt consolidation loan may lower your monthly payment, get you a lower rate than most credit cards, and the interest is tax deductible. Alternatively, a program like negotiated debt...

Q: 

Is there a special program that offers help paying medical bills?

A:  Read the Bills.com resource Negotiate Medical Debt to see if you can resolve the debt on your own. Otherwise, consider joining a debt settlement program. There are many forms of debt relief, including: i) debt consolidation loans, ii) credit counseling, iii) debt negotiation, and iv) bankruptcy. In your case, since your credit rating is already impaired, you should seek the solution that saves you the most money at the lowest cost with the lowest payment. For many people in your situation, negotiated debt settlement is the best solution. It gives you one payment, lower than your current payments (many times as much as 50% less) and typically programs are set up to get you out of debt for significant savings in about three years (although...