if I got a settlement from an former employer for 10,000 dollars for six months of back pay due to slander?

Question

I was layed off due to lack of work. My old boss slandered me to hopeful new jobs that I applied for. This leaving me with no work for 6 months . They paid me 10,000 dollars in a settlement because they got busted and they took 4,000 in taxes. I have 3 dependants, did I get screwed?

Answer 1

Well, you might have gotten screwed in the original situation, but not in taxes. They probably took out more than you'll actually owe on the settlement amount, but when you file your taxes, you'll be figuring what you ACTUALLY owe on all of your income, and whatever extra was paid in, you'll get back in a refund.