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View Full Version : How much tax on settlement?


mystique3790
Feb 8, 2008, 04:34 PM
Last year my mother received a settlement after suing her employer of $11 thousand dollars. How much tax will she end up paying the IRS for this? We received a 1099 for it and live in AL. Thanks

AtlantaTaxExpert
Feb 13, 2008, 02:35 PM
Since it probably replaced lost wages, the setttlement is considered taxable.

Enter it on Line #21 of Form 1040 as "Other income".