Does a union settlemnt for backpay (for unpaid overtime) count as an unlawful discrimination lawsuit award?

[kfloyd322]

I received a settlement from my employer in 2022 of $48,500 for unpaid overtime over the previous 4 years (as an hourly employee). It was added to my wages for the year on my W2 so $20,000 from the settlement was taken out in taxes. Do I mark this on TurboTax as an "unlawful discrimination lawsuit award" in order to get more of that money back in my return?

[Cynthiad66]

Yes, according to the Equal Employment Opportunity Commission, all forms of pay are covered by this law, including salary, overtime pay, bonuses, stock options, profit sharing and bonus plans, life insurance, vacation and holiday pay, cleaning or gasoline allowances, hotel accommodations, reimbursement for travel expenses, and benefits.

This income is taxed as regular income.  No where to mark as such.

However, if you incurred relating legal fees they may be deducted on schedule 1.  You may be able to deduct this using TurboTax Desktop by the online version does not support this deduction.