So we all know that taxes are never going away and we all have to pay them on our income and company profits. But what if that income is coming in the form of a BP claims check?
Well it will not at this writing change anything to your income taxes, as the money has to be claimed as income on your tax return. Now there is some cases where the money does not have to be claimed as income. Here is a list of taxable bp claim checks and non taxable BP payments.
Taxable BP Claims Payments
*Lost Wages (personal)
*Lost income (business)
*Compensation for emotional distress (personal)
Not Taxable BP Claims Payment
* lost property value
As my last post was talking about the BP final claims payment its important to remember that if you get a big settlement check from BP that taxes are due on the money that your receive from them. If you where to use an oil spill attorney for the job the amount you pay them can be deducted from your final net payment that you will receive from BP and that you have to pay taxes on.
Its very important to me and I cannot stress this enough, do not settle for less than what your claim is worth. When it comes to the final payment and you give up your right to go after BP again for more money make sure its enough money to get your though the next few years. Who knows how long the effect on this oil spill will last.