Is a lump sum settlement for age discrimination taxable. I did get a 1099 for it.

I received a w 2 for half of it.

1 answer  |  asked Feb 2, 2018 08:40 AM [EST]  |  applies to Pennsylvania

Answers (1)

Harold Goldner
Yes, of course it's taxable. It's payment for wages which you were not paid because of alleged unlawful discrimination. Often these settlements are paid partially on a W-2 and partially on a 1099 to make more up-front cash available to the Plaintiff who is out of work. However, the fact that it is categorized as "other income" on a 1099 does not change its taxable status. Your attorney, if you had one, should have explained this to you at the time you settled your case.

posted by Harold Goldner  |  Feb 2, 2018 08:48 AM [EST]

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