Lawsuit Mitigated Settlement Question

[rosevilleladi]

What is the name of your state (only U.S. law)? California


I was let go from my position due to "restructuring." After much discussion with an attorney, it was determined that they let me go illegally as the real reason was that I have a disability and when I was working for them, I did miss work to go from one doctor to another until a diagnosis was made and then of course, the doctors had me try all kinds of medications and procedures.
My employers never took me aside to tell me that my missing work was a problem nor that I was making mistakes etc. They simply fired me.
My attorney and I filed the paperwork suing them for Discrimination because of my Disability and several other issues.
After mitigating, we settled and as I am a legal novice, I did not contemplate the outcome tax wise of the settlement verbage which is stated as "resignation."
So - my question is; is this considered income or not.
Thank you!What is the name of your state (only U.S. law)?

 

[LdiJ]

What is the name of your state (only U.S. law)? California


I was let go from my position due to "restructuring." After much discussion with an attorney, it was determined that they let me go illegally as the real reason was that I have a disability and when I was working for them, I did miss work to go from one doctor to another until a diagnosis was made and then of course, the doctors had me try all kinds of medications and procedures.
My employers never took me aside to tell me that my missing work was a problem nor that I was making mistakes etc. They simply fired me.
My attorney and I filed the paperwork suing them for Discrimination because of my Disability and several other issues.
After mitigating, we settled and as I am a legal novice, I did not contemplate the outcome tax wise of the settlement verbage which is stated as "resignation."
So - my question is; is this considered income or not.
Thank you!What is the name of your state (only U.S. law)?

Odds are that at least a portion of it is income, if not all of it. Take the paperwork from the settlement and get a consult with a local tax professional. No one can tell you if its taxable or not without reviewing the paperwork.