Settlement tax question

[lossuzy]

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

I received a settlement in the amount of $40,000 from a discrimination lawsuit. Does anyone know how much of this is taxable and what is the percentage of tax taken out that I will owe?

Thank you.

 

[LdiJ]

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

I received a settlement in the amount of $40,000 from a discrimination lawsuit. Does anyone know how much of this is taxable and what is the percentage of tax taken out that I will owe?

Thank you.

Odds are that its a taxable settlement. However someone would have to actually read the paperwork regarding the settlement to be able to tell you that for sure.

If its taxable, it will be taxable at your marginal tax rate. See a tax professional.