I filed my taxes and received my refund for 2017, then unexpectedly received a settlement in a discrimination complaint. The employer deducted taxes for the lost wages portion and sent a separate check for pain and suffering. I have not received a 1099 & the payment was received in Feb. 2018. Do I need to pay taxes on this portion? If so do I need to do estimated taxes now? Do I need to amend my 2017 return?
You do not need to amend your 2017 tax return as your settlement was received in 2018. This should be reported on your 2018 tax return.
Generally, any portion of the settlement that is not used to cover your medical expenses for treatment of physical injury or emotional distress, is taxable. It would be smart to make an estimated tax payment for this income. The payment due date for the first quarter is April 17, 2018.
You do not need to amend your 2017 tax return as your settlement was received in 2018. This should be reported on your 2018 tax return.
Generally, any portion of the settlement that is not used to cover your medical expenses for treatment of physical injury or emotional distress, is taxable. It would be smart to make an estimated tax payment for this income. The payment due date for the first quarter is April 17, 2018.