Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-07-2015, 10:20 PM
Junior Member
 
Join Date: Feb 2015
Posts: 1
Dlse Settlement Award

I live in California and last year I was awarded 7,000 dollars in a Labor Board Employee Discrimination and Missed Meal / Breaks claim. Do i have to claim this as income in my taxes?? Haven't received a 1099 and was never told at the time of settling.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 02-08-2015, 03:00 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
Quote:
Originally Posted by cmira8180 View Post
I live in California and last year I was awarded 7,000 dollars in a Labor Board Employee Discrimination and Missed Meal / Breaks claim. Do i have to claim this as income in my taxes?? Haven't received a 1099 and was never told at the time of settling.
Yes, Employees must pay taxes on any type of damages for lost wages and also for any type of noneconomic damages. This also means that sometimes damages for emotional distress are taxable if they are not connected to a physical injury or sickness;however, tax law provides an exclusion from gross income for damage awards received on account of physical injury or physical sickness. The payor issues the 1099. However, its possible in this instance that a 1099 should either not be issued at all, or that both a W2 and a 1099 should be issued.You want to make sure to discuss this issue carefully with your attorney, because a lot of the time awards from employment discrimination cases are taxable and that factor needs to be taken into account carefully



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Settlement Bingermancu10 Divorce Tax Issues 1 01-20-2015 04:40 AM
Sale of an item received as competition award ale06 For 2012 0 08-28-2012 01:45 PM
Incorrect 10999 from settlement. What to do? CalHawk Income 0 07-26-2010 04:23 PM
What is a Structured Settlement? TaxGuru General 0 07-21-2009 01:28 AM
1099-Misc for Scholarship Award, how to defray taxes? LoRez Income 0 02-14-2009 03:48 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.