I recently received a settlement for a sexual harassment/wrongful termination lawsuit . Do I need to pay taxes on it?
It was settled out of court prior to trial 3 years after I was terminated. Employer settled rather than admit liability. There was nothing documented as to whether the money was for lost wages, damages, psychological distress, etc. It was just a flat settlement made to make the whole thing go away. My lawyer took his share up front but I am getting conflicting answers as to whether or not my money is taxable.
