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Infolawyer
Infolawyer, Lawyer
Category: Employment Law
Satisfied Customers: 53922
Experience:  Licensed attorney helping employers and employees.
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I filed an EEO complaint against my employer Dept. of the Navy.

Customer Question

I filed an EEO complaint against my employer Dept. of the Navy. They finally have made an acceptable settlement offer. I am satisfied with the monetary amount. I would like to know how this settlement will affect my taxes. The settelemt is being offered as a lump sum payment and not as back pay or wages. Although I live in New Jersey I am not considered a resident for tax purposes due to being married to an active duty military member. I am a Texas resident and Texas does not have income state income Tax. Will this lump some payment be taxed federally? Will i be given the entire amount and expected to handle the taxes my self? I have a copy of the settlement offer. Also I want to know that this offer is not something the Navy can back out of after i sign it and I will be paid the full amount.
Submitted: 1 year ago.
Category: Employment Law
Expert:  Infolawyer replied 1 year ago.
Hello, are you asking if it gets taxed as income?
Customer: replied 1 year ago.
Yes, and if I will be responsible for the taxes?
Also I would like to know if this settlement offer is for sure going to pay me if I sign it.
please see attached document.
Customer: replied 1 year ago.
I mean will the taxes be taken out of the lump some or would I need to pay them on this years taxes?
Expert:  Infolawyer replied 1 year ago.
Taxes get paid on the amount. Either deducted or paid at year end.
The agreement should be in writing and enforceable if there is a breach.
I wish you the best. I trust the answer has been helpful. kindly let me know.
Customer: replied 1 year ago.
i attached a copy of the agreement to look at. Please look it over and tell me if this agreement is enforceable. This is a federal claim and settlement.
Expert:  Infolawyer replied 1 year ago.
Yes it is enforceable once signed. I wish you the best. I trust the answer has been helpful. kindly let me know.
Customer: replied 1 year ago.
You read the settlement agreement?
If I agree to the settlement amount would I be save signing this agreement and getting payment? I don't want to sign an agreement and then it come back saying something like they don't have to pay the lump some. Its a lot of money.
Customer: replied 1 year ago.
*safe
Expert:  Infolawyer replied 1 year ago.
Agreement is enforceable where they agree to pay the amount by a certain date and signed by both sides.

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