| Class Action Lawsuit Taxes? If I get a check from a class action lawsuit, Do I have to claim that on my taxes? Or are taxes taken out already? Thanks
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No Victim=No Crime |
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 joakoPremium
join:2000-09-07
/dev/null
kudos:5
 ·Comcast
| If it's refunding something you paid for previously and that wasn't deducted from a tax return no. E.g you pay Netflix (non deductible expense) and through a class action lawsuit they refund you $0.32 you would not have to report the refund just like you never deducted the expense. If you deducted the expense then you would have to do something with reporting the refund. If it's not a refund e.g. you had a surgery and they used X product and the lawsuit is for "pain and suffering" again you would have to report that. There's no one right answer.
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PRescott7-2097 |
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| It is not a refund it was a law suit case so he did not pay any taxes on it.
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Caddy |
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| reply to billydunwood
It's Marenco v Visa Inc. They recorded many people's calls without permission/warning, and CA callers get $1485.50.
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No Victim=No Crime |
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joakoPremium
join:2000-09-07
/dev/null
kudos:5 Reviews:
·Comcast
| reply to Caddyroger
said by Caddyroger:It is not a refund it was a law suit case so he did not pay any taxes on it.
It could be a refund e.g. Yingling v. eBay "he Lawsuit, which is a class action alleging that eBay charged the incorrect amount of Final Value Fees for the sale of Parts and Accessories" But in that case the fees charged should have been written off as a business expense, but if you didn't you would not be liable for taxes.
In this case it is not it is compensation/punitive damages so yes tax would need to be paid.
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PRescott7-2097 |
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tcopePremium
join:2003-05-07
Sandy, UT
kudos:1 | reply to billydunwood
Typically you don't but I'm no tax expert. You were "damaged" and the settlement made you "whole". So you did not earn anything you had not lost. |
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