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Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121112  
Subject: Re: "Insurance payout tax liability?" Date: 8/22/2001 2:42 PM
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Thanks for the info, but I was wondering if the "payoff" to get rid of me would be considered a workmans comp thing or something else?

Yeah, so was I. It may very well come down to how the settlement is worded. That's why you need to be working with both your attorney and someone who knows tax law. As noted before, workers' comp isn't income. Back wages is. Economic damages may not be; punitive damages usually are. Etc.

You're on the right track to be thinking about these things, but there's only so far general information will take you. Then you have to get down into the specifics of your case with your advisors. A taxable settlement isn't necessarily a bad thing, as long as you know going in how it will be treated.

Phil Marti
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