Hi,
I received a settlement from Vanguard because I lvie in Massachusetts and the state filed a lawsuit saying the Vanguard clients were not properly notified about sell offs that result in extra high capital gains.
So I paid an extra 25k in taxes in 2021 but got a 25k settlement check in 2024. I also got a 1099.
Is this settlement amount taxable? It seems to me it is reimburing me for a wrong and should not be taxable.
Allison
