Thursday, December 15, 2011

Do i have to pay taxes on actual damages from a lump sum settlement?

I am about to recieve a lump sum settlement from a lawsuit. I see i will have to pay taxes, my question is a portion of the settlement is for my actual damages(it involved my credit report I had to pay a higher rate of interest)i am refinancing now that they repaired my report and now will have to pay closing cost again. also the additional interest i paid on my old mortgage.are my actual damages taxable? thanks bob

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