Will I have to pay tax and what percent?

Question

Lost my job as a result of whistle blowing and discrimination/non-accomodation. The defendant is offering to settle out of court.

Answer 1

Are you asking if a court settlement is taxable?

Answer 2

That's taxable as ordinary income. The tax rate will depend upon your total income for the year.

Only two types of settlements are tax-free. The first are ones that make you whole again -- for example the insurance settlement on a car accident that you use to repair your car, etc. The second are settlements due to physical injury or illness. And if any part of that settlement is for lost wages, interest or punitive damages, those portions are fully taxable.

Since your settlement is not covered by either of those exceptions it is fully taxable as ordinary income. It does not matter that the issue was settled out of court; it would have been the same if it had been adjudicated by the courts.

Answer 3

I assaume Sam and Joe are the same individual or a minimum of get the same deal. a million. share revenues tax: ((ninety.95 - eighty 5)/eighty 5)*one hundred = 7 Joe paid 7% revenues tax. 2.As a share of ninety.95 ((ninety.95 - eighty 5)/ninety.95)*one hundred = 6.fifty 4 Sam paid 6.fifty 4% of ninety.95 revenues tax.