Is My Award or Settlement Taxable?
The tax code concerning legal awards and settlements changes according to the type of claim in question. Most claims involving employment and business law are considered taxable under the federal tax code. This includes claims such as reputation damage, libel, and wrongful termination suits. In addition to the general sum received by the claimant, any interest paid on compensation must also be taxed.
If you are trying to work through the complex process of business litigation, contact the Orange County business attorneys of Daily Aljian at 949-861-2524 for a free consultation. Let our experienced and determined advisors help you better understand your options today.