I am going to receive a settlement from a discrimination lawsuit (settled out of court) of $50,000.00. It states in the agreement that this amount is for pain and suffering. The lawsuit was for age and religious discrimination. My question is how much will I have to pay in taxes on this $50,000.00?
Thank you for your help.
1 Answer from Attorneys
In a discrimination case, the recovery is taxable. The legal fees, if any, are deductible.