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IRS Taxes Colin Kaepernick's NFL Settlement, Here's Why Source: forbes.com - Feb 20, 2019 The news that Colin Kaepernick and the NFL settled their collusion case has been replaced by talk about who “won,” and speculation about just how much money changed hands. The details are not public, but Mike Freeman of Bleacher/Report has said there is speculation that Kaepernick was paid something on the order of $60 to $80 million. There is no official figure, but if the rumored range is true, that's a nice payday. But how much the lawyers take, and how much taxes take, should be considered. After all, is the money taxable? Plainly yes, unlike the NFL's concussion settlement, where monies were to go to injured players. Most legal settlements are fully taxable as ordinary income, and Kaepernick's settlement would be viewed as lost earnings. The same tax rules apply whether you are paid to settle, win a judgment, or if your dispute only reaches the letter-writing phase. Category: General Business |
