Taylor A. asked
I am settling with my employer in lieu of an ADEA lawsuit. The settlement for just over $100K will be split 1/3 2/3 with 1/3 being cut on a separate check for my attorney. My income will be around $180,000 this year (filing jointly with my husband who will earn about $50K). I have already paid my FICA this year. Should I push to get the check prior to year end, and can I report my attorney fee as an above the line income reduction - or will it be limited to an itemized deduction subject to 2% of my AGI? Does it matter if in the agreement the amount is listed as a negotiated settlement versus severance? And is miscellaneous income on a 1099 taxed at a higher rate?
December 4th, 2024
Russell H. answered
Whether you should push to get the settlement check before the end of the year depends on your total...
December 4th, 2024
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