Tax question

[TMoore]

A few years ago I was hit by a car, and was finally awarded a settlement this tax year (2005). It was for 6k, and after atty's fees I got about half that. Do I have to claim this on my taxes? I asked my atty, he said "I don't think so, ask an accountant", asked an accountant I know they also said they do not think so. Anyone have experience with this? Opinions?

 

Thanks!

 

T

Edited January 19, 2006 by TMoore

[genseeker]

If any amount was for lost wages, then you need to claim that amount. Amounts awarded as punitive damages for pain & suffering are not taxable.

 

This is from both personal experience and from formerly working preparing taxes at an accounting business.

[TMoore]

Do I enter it as other? I've only ever done a 1040EZ in my entire life. The amount for lost wages is like, 4 days of work.

[TMoore]

let me clarify last night's post. Included in the settlement was 4 days pay (10/hr), the rest was med bills,pain,atty fees.

 

So I only claim about 300.00 of it?