In 2010, Walmart settled a class action suit in which I was a privileged participant.
My gross settlement payment was $1161.39
Net wages $90.04
Total Taxes Withheld $7.46
Net Settlement Award $1153.93
With the check that was sent last summer, I also received a W2 Tax Document.
From this W2, I am able to now transfer the figures to my TurboTax.
I am retired, I live in State of WA, I have no other income besides SS.
Is the net settlement award declarable to Uncle Sam and is of any consequence on my 1040?
Turbo tax did not ask if I had received any settlement awards in 2010.
Thank you for any help.
Wed Jan 19, 2011 4:09 am
coaster Senior Advisor
Cash: $ 1626.30
Joined: 11 Oct 2005
It looks to me like the answer should be in Pub 525 "Taxable and Non-taxable Income", easily found as a downloadable PDF on the IRS web site ... for reading at your leisure, preferably with stiff drink in hand.