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Does Texas Tax Mesothelioma Settlements? Asbestos exposure lawsuit settlements count as income tax purposes?

By Edited May 16, 2015 0 0

A number of states have had difficulty in deciding whether to tax recipients of mesothelioma settlement cases and court cases. In this regard Texas citizens have nothing to worry about as their state is comfortably placed financially.

Hundreds of victims register claims every year to obtain damages from a dwindling mesothelioma trust fund. The fund was set up to reimburse sufferers of the lethal cancer who contacted it because of the exposure to asbestos. Since they have received the dues they are in a position to pay their mesothelioma lawyers. Texas lawyers get a payment only if and when the victim receives their dues. With the 2010 tax season drawing closer many of these beneficiaries want to know whether their reimbursement packages are taxable under Texas tax laws.

Texas State Income Tax

Fortunately, in accordance with Texas tax laws all earnings received in Texas are free of taxes. It is one state that earns its revenue from means other than their citizens' efforts. The asbestosis legal representative will be able to offer you detailed suggestions and might even provide for free in these cases. However if you reside in Texas you will not have to pay taxes on your lung cancer or mesothelioma settlement or lawsuit payments to the State of Texas.

What about Federal Income Tax?

The United States Internal Revenue Service exempts penal damages court case awards and settlement agreements as income for purposes of federal tax. However these sums, must be normally disclosed to the federal government and taxes paid on full or a part of the dollar amount. Since most mesothelioma trust fund settlements and lawsuit awards have been declared as compensatory amounts you need to consult your mesothelioma lawyer in Texas in relation to your exact case.

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