When are legal settlements taxable?

According to the IRS, “all income is taxable from whatever source derived, unless exempted by another section of the Code” (IRC Section 61). How does that affect monetary awards in legal settlements? Awards and settlements can be broken into two separate groups to determine whether they are taxable or not. The first includes claims relating …

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Taxation of Corrective Distributions

As we enter January of every year, it is time to start thinking about personal income taxes. While this is not a favorite to many, there are many important tax reporting forms that individuals must be on the lookout for over the next coming months.  One of these is Form 1099-R – Distributions from Pensions, …

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