How to report tax return for Employment Lawsuit Settlement

[peterlee]

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

I had an employment lawsuit settlement last year, the ex-employer sent me a 1099misc form and put the amount in box 3, other income.

The lawsuit is related to age discrimination, how to report the tax return, is it considered as taxable income?

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

 

[ShyCat]

Presumably you were awarded damages of lost wages due to age discrimination, so the settlement would be taxable as ordinary income, same as the wages would have been. You report it on the Other Income line.

 

[peterlee]

Thank you.

I also had unemployment benefit last year, EDD will ask me to pay back from the out of court settlement?