Legal Question in Legal Malpractice in Illinois

Re: Settlement

The taxability of settlements depends upon the nature of the lawsuit that was settled. If, for example, you filed an employment suit, the proceeds from settlement are taxable (as that would otherwise be viewed as "backpay" or "frontpay"). If, on the otherhand, the lawsuit was for some personal injury, then generally the proceeds from settlement are not taxable. You would need to speak with an accountant or tax attorney, however, for information regarding your particular circumstances. Such professsional would also be able to advise you on the gifts about which you wrote.

-- Kenneth J. Ashman; www.AshmanLawOffices.com

This communication is intended for informational purposes only and is not intended to create an attorney-client relationship, which, under the policies of Ashman Law Offices, LLC, can only be created by execution of a formal retention agreement.