The settlement was for wrongful termination and at the time of settlement it was agreed that the other party would pay it so it wouldn't be considered wages. Does that make sense? I put on my return as miscellaneous income but do I need to put in a different way or category do I don't have to pay as much tax? My settlement was $27,000 and from what I'm seeing I'm having to pay around $6,500 in taxes. Ouch!
