Legal Question in Tax Law in New York

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.

Asked on 2/26/13, 2:44 pm

1 Answer from Attorneys

Walter LeVine Walter D. LeVine, Esq.

In a discrimination case, the recovery is taxable. The legal fees, if any, are deductible.

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Answered on 2/26/13, 3:44 pm

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