Are attorney's contingent fees from personal injury settlement taxable to the atty as income? ?

6 Responses to Are attorney's contingent fees from personal injury settlement taxable to the atty as income? ?

1. Earl s says:

   August 28, 2010 at 4:52 pm

   I’ll give any answer you want, but the IRS will say yes.

   Reply
2. Deereman says:

   August 28, 2010 at 4:52 pm

   Income is income so, yes it is.

   Reply
3. golferwhoworks says:

   August 28, 2010 at 4:52 pm

   yes as that is how they EARN their living

   Reply
4. v b says:

   August 28, 2010 at 4:52 pm

   Of course it’s income to the attorney!

   If the ENTIRE settlement is for the personal injury, then it’s non-taxable. Attorney’s fees for non-taxable income are deductible.

   If, on the other hand 1/4th of your settlement is, say, for lost wages, then it’s taxable and 1/4th of the attorney fees are an itemized deduction.

   Reply
5. wartz says:

   August 28, 2010 at 4:52 pm

   They are income just like any other fees once you have them in hand.

   Reply
6. travelguruette says:

   August 28, 2010 at 4:52 pm

   Yes they are.

   Reply