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the money received from settlement is taxable from IRS. and the money def doesn't bring your kid back. but according to law there are legal limits on how much y

the money received from settlement is taxable from IRS. and the money def doesn't bring your kid back. but according to law there are legal limits on how much you can claim. it might be easy to earn for you on 4 years but for a poor person that might be a 10 year effort to earn, so don't count in your years. also def consult an attorney regarding this, he can explain the legal ramifications of it and if you feel it is right go ahead with settlement, also keep in mind that all lawers are friends so they know which lawer is representing the other party and their capabilities (personal experience) absed on that they can predict the result of your case, even the judge and the jury greatly affect the case. dont think it is their mistake means that you will win, there is a possibility that if they drag you to court they can end up paying less, it happens and it saves them a lot of legal fees. that is the reason some companies like to settle, again ask you lawer. But loss is a loss. try to accept the fact and plan, do meditation and plan your life around this loss.

tiahura 5y ago
Don't give tax advice if you don't have any clue what you're talking about. https://www.irs.gov/pub/irs-utl/lawsuitesawardssettlements.pdf https://www.irs.gov/pub/irs-utl/lawsuitesawardssettlements.p... Wrongful Death Claims for wrongful death usually encompass compensatory damages for physical and mental injury, as well as punitive damages for reckless, malicious, or reprehensible conduct. As a result, both claims may generate settlement amounts. Any amounts determined to be compensatory for the personal physical injuries are excludable from gross income under IRC § 104(a)(2). Any amounts determined to be punitive are not excludable under IRC § 104(a)(2). This is true regardless of whether the punitive amounts are received prior or subsequent to the August 20, 1996, amendment. See O’Gilvie v. United States, 519 U.S. 79 (1996). Caution, however, should be used in applying the general rule that punitive damages received in wrongful death case are taxable. Historically, the courts have looked to the state statute under which the wrongful death claim was litigated to determine whether there could be compensatory and/or punitive damages awarded. This search may reveal a state statute which provides only for punitive damages in wrongful death claims. In these cases, IRC § 104(c) allows the exclusion of punitive damages for amounts received after 1996.

tiahura 5y ago

Don't give tax advice if you don't have any clue what you're talking about. https://www.irs.gov/pub/irs-utl/lawsuitesawardssettlements.pdf https://www.irs.gov/pub/irs-utl/lawsuitesawardssettlements.p... Wrongful Death Claims for wrongful death usually encompass compensatory damages for physical and mental injury, as well as punitive damages for reckless, malicious, or reprehensible conduct. As a result, both claims may generate settlement amounts. Any amounts determined to be compensatory for the personal physical injuries are excludable from gross income under IRC § 104(a)(2). Any amounts determined to be punitive are not excludable under IRC § 104(a)(2). This is true regardless of whether the punitive amounts are received prior or subsequent to the August 20, 1996, amendment. See O’Gilvie v. United States, 519 U.S. 79 (1996). Caution, however, should be used in applying the general rule that punitive damages received in wrongful death case are taxable. Historically, the courts have looked to the state statute under which the wrongful death claim was litigated to determine whether there could be compensatory and/or punitive damages awarded. This search may reveal a state statute which provides only for punitive damages in wrongful death claims. In these cases, IRC § 104(c) allows the exclusion of punitive damages for amounts received after 1996.