Lawsuit Settlements

Taxpayers are often surprised that they are obliged to pay taxes on lawsuit settlements. Without proper planning, they can lead to substantial tax liabilities. Here are the most common questions we get from our clients.

• What are the tax implications of a lawsuit settlement?
• How do I know if I am subject to tax liability?
• Do I need to be issued tax forms?
• What are the differences between W-2 and 1099?
• How can I minimize the tax liability?
• What are things I need to include in the agreement to have the most tax beneficial outcome?
• Can I have my CPA work directly with my attorney in achieving the best tax results?

The above are all important before finalizing an agreement. In the past, many of our clients received settlement payments and we have helped them achieve the most optimal tax results.

Contact us below if you would like to get started with an overview of your situation or to book a consultation with a CPA/senior accountant to discuss the strategies.