Question

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?

Forum|Forum|3 years ago
January 5, 2023
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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.