Anon11
New Member

Is a lump sum settlement for damages due to a whistleblower/retaliation case taxable?

My spouse was involved in a federal whistleblower/retaliation case. The OIG found in his favor and mediated a lump sum settlement for damages. We specifically asked for it to be referred to as a lump sum so that we wouldn't have to repay the unemployment compensation he received during that time. We never received a 1099 and the income was not reported on his W2. Is this amount taxable?