Skip to main content
July 23, 2024
Question

How are lump sum settlement payments taxed in California?

  • July 23, 2024
  • 1 reply
  • 0 views
No text available

1 reply

Employee
July 23, 2024

Legal settlements are taxed according to the kind of income they represent.  Back wages are taxed as wages.  Settlement for physical injury are not taxable.  Settlements for damages to property may be taxable if they are more than the cost basis of the property.  What is the reason for the settlement?