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Antitrust Settlement Check

I have received a check for a currency conversion fee antitrust settlement (Ross, et al. v. American Express Co., et al.).

This lawsuit involves claims that the settling defendants Bank of America, Capital One, Chase, HSBC and NAF and the non-settling defendants Citibank and Discover violated federal law by conspiring, with each other and certain non-defendants, to require that their cardholders (a) take all legal disputes to arbitration rather than court and (b) give up any right to participate in class actions against the above six credit card companies. This case is on behalf of cardholders who are subject to arbitration clauses. Cardholders who are not subject to arbitration clauses, including any Discover cardholders who have opted out of arbitration, are not included in the case.

I don't have to report the amount of the check on my 2013 federal income tax, right? (The check amount is only $8.23, so I am not overly worried about it but nevertheless I would like to know...)

Thanks.

Reply to
tb
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It would seem to me that this is a partial refund of the excessive fee you and other were charged. It's a refund of your own money, not taxable. The lawyers who got millions? Taxable.

Reply to
JoeTaxpayer

It depends on why you exchanged currencies. If you did it to purchase business assets, then the cost basis (for capital expenditures) or expense would be adjusted. If you exchanged currency for a personal purchase or to send money to a relative, then there isn't a tax implication.

Of course, the IRS isn't going to get involved on a $8.23 transaction. Any agent hung up on that small of an amount would likely be shown the door by his or her supervisor.

Reply to
Gary Goodman

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