ERISA settlement is taxable, says U.S. Tax CourtPat Murphy
Selling a life insurance policy, also known as a life settlement, might seem like a good option if you no longer need the coverage. However, doing so can trigger income and capital gains taxes. If you sell your policy for more than what you’ve paid in premiums, the gain on that amoun...
You might end up owingtaxes on the forgiven debt.This is because the IRS will likely consider this amount taxable income. As you can see, you're potentially making a bad situation worse by opting for debt settlement. For that reason, you should first exhaust all of your other options befor...
This is the most common type of claim where you will be asking for compensation so you can repair or replace the property that got damaged in an accident. For example, getting a settlement after a car collision should cover the expenses for the repair of the vehicle. The reason why you d...
Debt settlement "settles" your unsecured debt for less than you owe, but it will damage your credit among other risks. Learn how settlement works and explore alternatives.
The monthly income you would receive, however, would be fully taxable. You asked about the amount of money you could receive each month. The amount you can withdraw monthly from an annuity depends on the type of annuity you buy. If it's an immediate annuity, then the insurance company ...
Understand the IRS 1099 Form: Discover its purpose, who receives it, how to fix mistakes, the different types of 1099 forms, and why e-filing makes managing them easier.
Settlement For Lost Wages Is Taxable This article discusses the case Rivera v. Baker West Inc., which deals with the taxation of settlement for lost wages. An employer properly withheld taxes from a settlement payment when the agreement did not expressly refer to damages th......
the good news is that money from a personal injury settlement isn’t taxable, either federally or by your state. The sort of damages you may collect because of your injury, such as medical bills, lost wages, pain and suffering and the like are not taxable. Those are known as compensatory...
As an example of a debt settlement, you might offer to pay a creditor to which you owe $10,000 a lump sum of $7,500 (or three $2,500 installments) to settle the debt. It is entirely up to the creditor whether to accept your offer, but they might be inclined to if they believe...