Alabama | Tax Law
10/24/99, 9:40 pm
Legal Question
Settlement Income Subject to Income Tax?
I was awarded a settlement in a civil action case involving an insurance company who was falseley representing life insurance policies as retirement or savings plans. Monies I paid into this policy were based on after-tax income as opposed to pre-taxed. The settlement amount I was awarded was based on the amount of money I contributed to the "program" and the length of time I had the policy. What portion of the settlement, if any, is taxable and if so at what tax rate?
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