I am currently involved in a lawsuit where I'm suin my former employer for age discrimination and wrongful dismissal. Any settlements which may be reached, how are they taxed? ie as income in the year received for example. are any settlements devoid from tax
The settlement portion that is income replacement is taxed as income when you receive it.
But if there is another part of the settlement that is for damages you are not taxed on that portion.
You are very welcome.