Skip to main content
February 1, 2022
Question

Settlement for unpaid fees

  • February 1, 2022
  • 1 reply
  • 0 views

I recently won and settled a case with a contractor where I was a sub-contractor.  The amount I settled for is about 2/3 of what I was actually owed.  As far as I know, the settlement is income to me.  Do I get any tax break for the monies that I wasn't paid i.e., the remaining 1/3 of the outstanding debt? 

1 reply

February 1, 2022

No, there is tax break or deduction for the unpaid money. You did not get paid and paid no tax on it.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"