KristinaK
Employee Tax Expert

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I think it can go either way. Yes, most of the time settlements are taxable. But in your case, it could be a reimbursement. What you need to do is look at the settlement agreement and see if there is any verbiage indicating it one way or the other. 

 

One other consideration (not a sure thing but a general observation), if it is income, the university would have issued a 1099 to you to report that income. 

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