Let's see, probably lawyers collect 'contingency ' fee - about 60%
IRS collects at least 35% - leaves about $225,000.
state taxes ? Medical? $
There's been many case where, after everyone else takes the gravy, there wasn't enough to settle the whole IRS bill - and they ended up bankrupt - but no matter what, you have to pay IRS.
Those who rake in the dough are everyone BUT the victim....
great point!
Mike
irs may not be true. there are cases where trial awards are not taxed.
Lawyer about 33% if this did not go to court. No IRS taxes as this was settlement for injury. Still most who get windfall like this spend it all within 5 years.