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
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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
Since it probably replaced lost wages, the setttlement is considered taxable.
Enter it on Line #21 of Form 1040 as "Other income".
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