Just a note: since the defendants paid my attorney directly, there was no part of the settlement amount that I received was not taxable. Of the amount that I received, 90 % was identified as payment for pain and suffering and I had to pay income taxes on the entire amount of that portion of my settlement. The remaining 10% balance of my portion of the settlement was identified as back wages and the defendants withheld employment taxes on that amount. So, just to reiterate, there was no portion of the amount that the defendants paid me that was not taxable according to the IRS.
