I was paid money for a settlement of a class action lawsuit against Mercedes Benz Canada Inc. Is this money taxable? If so where is it recorded on my tax return?
I was paid money for a settlement of a class action lawsuit against Mercedes Benz Canada Inc. Is this money taxable? If so where is it recorded on my tax return?
I was paid money for a settlement of a class action lawsuit against Mercedes Benz Canada Inc. Is this money taxable? If so where is it recorded on my tax return?
It depends on the nature of the lawsuit and how the settlement was paid out. If it was a personal injury lawsuit, then it is likely not taxable, but if the settlement included something like a severance payment, then all or part of it might be taxable.
It would be a good idea to contact the Canada Revenue Agency (CRA) and check with them. If you are in Canada or the United States, you can call the CRA at 1-800-959-8281.
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