Received BP Money?

Depending if you are an employee or self-employed will determine how your BP money you received is taxable.  If you received BP money and you worked for an employer and received a W2, most likely the money you received will be treated as Other Income and taxed at your regular tax rate.

If you received money as a self-employed person, you will have to most likely file it as lost wages/income from business and it will be taxed twice.  Once at 15.3% Self-Employment Tax of the net amount after any business related expenses are deducted and then added to your regular income and taxed at your regular tax rate after your Standard Deduction and Personal Exemptions are deducted.

Individuals who received money from the BP Subsistence Loss Settlement has to report that as income; however, it is treated as other income so you only pay taxes at your tax rate.