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-   -   How much tax on settlement? (https://www.askmehelpdesk.com/showthread.php?t=181876)

  • Feb 8, 2008, 04:34 PM
    mystique3790
    How much tax on settlement?
    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
  • Feb 13, 2008, 02:35 PM
    AtlantaTaxExpert
    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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