Do I have to pay taxes on the emotional disterss portion of my out of court settlement?
I was terminated after returning from FMLA leave for treatment of Hepatitis C and informed my employer the treatment did not work. I was harassed and blamed for my position falling apart due to my illness and taking a leave. When I filed an investigation into the treatment, I was fired the same day. I filed a suit and settled out of court. I received one check for attorneys fees, one check for lost wages with taxes deducted, and one check for the emotional distress. Thank you.
1 answer | asked Jan 29, 2012 8:38 PM [EST] | applies to Iowa
Answers (1)
Yes you do have to pay taxes. You should get a 1099 from your former employer but even if you dont you must report the amount as income. R
posted by Roxanne Conlin | Jan 29, 2012 9:38 PM [EST]
posted by Roxanne Conlin | Jan 29, 2012 9:38 PM [EST]
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