Tax Treatment Bristol-Myers Settlement

Community UserCommunity User Member ✭✭✭✭
edited October 2018 in
I just received a check for 117.92 as a settlement from the Bristol-Myers litigation.  How is this distribution treated?  Does it go towards lowering my stock cost? Or does it go to this year's gross income? The covering letter states that the funds are Qualified Settlement Funds.

Comments

  • Rocket J SquirrelRocket J Squirrel SuperUser ✭✭✭✭✭
    edited October 2018
    Court awards are generally treated as "other income" and may or may not be taxable depending on the nature of the award. If you are in the United States, see <url=http://www.irs.gov/publications/p525/ar02.html>IRS Publication 525</url>. Search for "Court awards and damages".
    Quicken user since version 2 for DOS, now using QWin Premier Subscription on Win7 Pro & Win10 Pro.
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