Yes, settlement for wrongful termination is taxable income.See Are legal settlements taxable? https://ttlc.intuit.com/questions/2899059-are-legal-settlements-taxableTo report a lawsuit settlement in TurboTax:Click My Account (Top right of your screen).Select Tools. In the pop up window, select Topic Search.In the search bar, type in lawsuit settlement.Highlight it and select GO, and follow the prompts.

TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

dpremo36

Level 1

Question

Is a settlement for wrongful termination taxable?

Forum|Forum|7 years ago
June 3, 2019
1 reply
0 views

No text available

TurboTax Deluxe Online

Marketstar

Level 12

Yes, settlement for wrongful termination is taxable income.

See Are legal settlements taxable?

https://ttlc.intuit.com/questions/2899059-are-legal-settlements-taxable

To report a lawsuit settlement in TurboTax:

Click My Account (Top right of your screen).

Select Tools.

In the pop up window, select Topic Search.

In the search bar, type in lawsuit settlement.

Highlight it and select GO, and follow the prompts.

prettywoman14

Level 2

i received two checks from a wrongful termination-one check was from back wages and taxes were taken out of that-the second one is 16,875 for non-economic damages including emotional distress. i do not work and live on social security earning only. I was told I would be sent a Form 1099 for the second check. What percentage of the $16,875 will i be taxed?