I received a $200k settlement for emotional distress due to pregnancy discrimination. Do I have to pay tax on this? If so, how can I reduce my tax burden? My husband earns $150k, and I'm afraid we're going to get walloped.
Do I have to pay tax on a non-injury related settlement?
byu/Jolly-Ad5333 intax
Posted by Jolly-Ad5333
1 Comment
Yes it’s taxable assuming the distress is not a direct result of a physical injury or physical sickness. As far as reducing it, you can put 47K into 401-Ks if you both have one. Can’t think of too much else other than that.