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It’s income. Whether that’s to you personally or some entity you have created, it’s income
Thanks!
Rising Star
Yes, you will owe tax on it. You should be receiving a 1099 tax form from the firm that you referred the case to at the end of the year. Even if you dont, you technically still owe the tax on it. Word of advice- if you are going to be receiving referral income, create a PC, PLLC, etc to help with the tax burden.
Thanks, much. This is helpful.
Yep. The answers above are correct. You do have to claim it :)
Rising Star
Yeah the attorneys pay tax. You aren't the injured
Are you practicing tax law?