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I won a 68,00.00 settlement after I filed a claim with the

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I won a 68,00.00 settlement after I filed a claim with the E.E.O.C.AGAINST MY FORMER EMPLOYER mEDICAL wEIGHT lOSSS cLINICS because they fired me for being bipolar
being that it was a discrimination suit against the bipolar disorder that I have do I have to pay taxes ansd if I do How much would it be
Thank you
C.Jovic
Submitted: 4 years ago.
Category: Tax
Expert:  Merlo replied 4 years ago.

Hello catj,

 

The claim that you had against your employer was for a wrongful discharge issue, and the settlement that you received was due to the wrongful discharge. It has nothing to do with your medical issues, even though that may be the reason the discharge occured.

 

This settlement would be fully taxable to you, however, the rate of tax that you would pay will depend on your total other taxable income for the year, as it is your total taxable income that determines the tax bracket that you are in.

 

If you are filing a joint return with your husband and if this is the only taxable income you would have for the year, you will owe approximately 15% in federal taxes and 4.35% for MI state taxes.

 

If this was helpful please press the Accept button. Positive feedback is also appreciated.

 

Thank you cat

 

 

Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
Merlo and 9 other Tax Specialists are ready to help you
Customer: replied 4 years ago.
I nstated that my husband is diabled as well as I am. There is no earned income the only income we have is our disability checks
Expert:  Merlo replied 4 years ago.

Hello again catj,

 

If the only other income you have is from your disability checks, then you will owe 15% federal tax on this settlement plus 4.35% MI state taxes.

 

Thank you cat and let me know if you have more questions.

 

 

 

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