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Old 02-24-2013, 12:18 PM
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Rioe Rioe is offline
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I don't know anything about this legal and tax stuff, but I cannot believe that a costs award would be taxed as income! You paid your legal fees out of post-tax income, and just because you are being reimbursed doesn't make it income again. That would be like buying something from a store, then returning it and getting your money back and being taxed on the refund!

The only thing I can see that would be complicated would be refiling a past income tax return if you had claimed for legal fees on it. If the other side later paid your costs, then you would have to remove the claim and correct your return. And surely it would be after actual payment was received, not just the order, because as we all know, that doesn't guarantee payment.
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