md95065

So, for the first time in my life I got a settlement from a class action lawsuit that is actually worth something - not a coupon for 25% off on my next oil change or a free carton of froyo, but actual real money - and enough to make me tempted to go out and do the patriotic thing this 4th of July weekend and spend it on something that I want but don't really need ...

But, before I do that I thought that I should figure out whether or not it is taxable and, after a few internet searches, it looks as if it probably is. I had thought that settlements from lawsuits were not taxable but it looks as if that only applies to compensation for some kind of personal injury - this is from a securities litigation - the Schwab Yield Plus California Settlement so it looks as if it will be treated as ordinary income ...

Anyone have any experience with this kind of thing?

Bob

Ask Ray....I think he won a whopping $10 from the peanut butter food poisoning settlement a few years ago

I got 25c once in a settlement...wasn't even enough for a can of coke

Ray

I actually got about $1200 its not taxable ...

from the lawmower suit $32