Taxes on Federal and State Foreclosure Reimbursements

[feelingnutsy]

Does anyone know if federal and/or individual state taxes
must be paid on the $300 federal reimbursement and the
various state reimbursements to people who went through
foreclosure in recent years?

[justbroke]

It is probably "regular" income for purposes of taxes. However, you would really need to speak with your tax specialist (or attorney) to see if, in your particular circumstance, it is in fact reportable. If the Independent Foreclosure Review (Rust Consulting) decides to issue 1099-MISC tax forms, then it would in fact be reported to the IRS.

I would plan on it being taxable, and hope that it is not (with no 1099s issued).

For details on taxability and reporting, please see https://independentforeclosurereview...axInfoRes.aspx. Please note that they are not providing any advice and are just letting you know their procedures. Depending on what the purpose of the settlement amount, it may or may not be taxable. That is why it is too specific.