after paying for attorney and litigation fees? Will I have to pay taxes if this settlement was due to injury caused by a drug company? If taxed, will I be able to use the attorney and litigation fees as a tax shelter?
I am being awarded $140,000 in a class action lawsuit. How much will be left over?
19
Mar
spyderman1212
March 19, 2010 at 7:53 am
you wont have to pay taxes on the amount paid for atty and court fees, just the balance. i would imagine with all the fees and taxes, you will have about half left over.
T2theL
March 19, 2010 at 8:43 am
Well that would be dependant upon how much you agreed to give the attorney initally when he agreed to take on your case.
E.M.
March 19, 2010 at 9:02 am
after paying for your lawyer , taxes, half to me just for answering your question and being you very best friend, lets see
$1.00 don’t spend it all in one place…..LOL……
chslaw
March 19, 2010 at 9:16 am
What does your fee agreement the lawyer say that he/she will get?
gurrrly
March 19, 2010 at 9:26 am
about $86,699.52
ke su
March 19, 2010 at 10:05 am
probably not much left over.
D
March 19, 2010 at 11:04 am
Usually, medical malpractice fees are 40%. You were part of a mass tort. You would need to read your contract to be sure of the percentage.
You are also responsible for the actual expenses it costs to present the evidence that you are injured. There is no way for me to know how much that would be, especially in this sort of action.
For example, in my state, it costs $275.00 to simply file the action. It costs another $200 to demand a jury trial. Usually, it costs approximately $500 to $600 to get medical records. If there are subpoenas and depositions, that can run to anywhere depending on how much was necessary to prove your allegations, and if it required an experts. Some experts I have worked with have charged over $10,000 per hour. I do not know if any or all of the expenses are going to be shared by the other plaintiffs.
Proceeds are usually not taxable.
I think the smartest thing I have seen is people putting their money in structures where the money can sometimes double depending on how you select your options. Ask you attorney about a structure.
I am sorry you were damaged, but I am happy you were successful in your claims. It is unfortunate that permanent injuries cannot be wiped away. Best wishes and good luck.
frankie59
March 19, 2010 at 11:08 am
The settlement is compensation not income. There will be no taxes on compensation. In other words in the settlement you are recovering part of your LOSSES and it is not taxable. Your lawyer should have told ya that.