Have a Tax Question? Ask a Tax Expert
The amount you'll owe will actually depend on your total income for the year (including those dollars)
What they've withheld is about 21%
I've been unemployed so this is the only income I've received
Can you tell me what the two different check represented? (It COULD be that the 39000 was to indemnify you (make you whole) so that that portion (the other possiobly being punitive?) would not be taxable
Do you file as single or jointly?
I can do a quick projection and see where that puts you
ok ... give me just a second
This was a wrongful termination case and I did not receive anything for punitive damages
OK what they've done is assume that it's all taxable ... but look at this
so with all other things being equal, you're looking at a small refund IF it is all taxable
Your standard deduction and personal exemption is
so that means that the actual taxable income is 108500, and the tax on that is 23533
If 25000 is withheld, you're a little overpaid
Oh, okay. My lawyer said I may get something back from the money they taxed but to talk to a tax accountant. Wasnt sure though.
looks like they estimated it pretty well
Great! Thank you so much! Is there a way that I end up owing? Just trying to be sure so I'mnot freaking out come tax season.
I really doubt it if you have no other income ...
YOu rreally need to have someone that's good prepare your taxes because not only have withheld more than enough?
Don't want anything hidden to come up especially since I received two separate check
An award for unlawful termination is considered income to the recipient and thus must be included in income, usually on line 21 of Form 1040 where it says, “other income.” The award is not subject to self-employment taxes.
Thays the bad news
NOW THE GOOD NEWS
The good news is that recent legislation now allows an above-the-line deduction for attorney fees and court costs paid in connection with unlawful termination, discrimination and certain other lawsuits.
so not only have they withheld enough, you should have even more coming back because you get to deduct the atorney's fees
Hteat! You are excellent! Have a little piece of mind before I get a tax accountant.
Do you know about what the attorney's fees were?
:) I do that too
In total I received a settlement of $225, 000 so they received the remainder $105, 000
You'll be fine !!!
SO many time, I have to give bad news here ... that's great
Yay!!! Thank you so much!!!
If this HAS helped, I would appreciate a feedback rating of 3 (OK) or better (excellent, is ideal)… That's the only way they will pay us here.
HOWEVER, if you need more on this, PLEASE COME BACK here, so you won't be charged for another question.
Boy, and am I happy to be that one! :)
Lane <- smiling
You will get a great score! Thank you! Best $30 I've spent lol
Glad to help
You're very welcome
Yeah, I did think about that earlier. How much do you think I would have to pay, if you would know? I'm definitely saving a lot of this money and doing some job searching so I don't have to dip into anymore, but it's great if I can get money back when I do taxes.
You are very welcome!
Oh yeah, I forgot to ask this yesterday. Do you think it's a good idea to find a tax accountant now, or when tax season comes along? Does it matter at this point? You helped a lot with my general questions so that is nice to know.
Awesome, thanks again!