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skbonner1

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i received a settlement from yaz birth control lawsuit is it taxable

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Taxability on settlements

If you receive proceeds from settlement of a lawsuit, you may have questions about whether you must 

include the proceeds in your income. This publication provides information about whether you must 

include the proceeds of certain kinds of settlements in your income. Whether you must include the 

settlement proceeds in your income depends on all the facts and circumstances in your case.

A settlement payment may consist of multiple elements that have been allocated by the parties. For 

example, an agreement may include allocations to back pay, emotional distress, and attorneys’ fees. 

Generally, the IRS will not disturb an allocation if it is consistent with the substance of the settled claims.

http://www.irs.gov/pub/irs-pdf/p4345.pdf

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