Hi,
My wife worked as an au pair several years ago, and in April 2020, we received a settlement from a lawsuit that was filed because au pairs were being underpaid. We received the settlement, but opted to have taxes withheld from our settlement check. However, we withheld at our current tax rate (12%), and not at the rate at which she should have been taxed when she earned her wages, which is close to 0. Is there a way to amend our tax return to get the money that we withheld, which we should not have withheld?
