BulldogTom Posted March 4, 2015 Report Posted March 4, 2015 TP is settling a lawsuit with employer claiming unlawful discrimination. Employer is settling without admitting wrongdoing. Because they are not admitting they discriminated, does this change the above the line deduction treatment for the settlement proceeds? I am pretty sure that the treatment does not change. Tom Newark, CA Quote
JMovichEA Posted March 4, 2015 Report Posted March 4, 2015 Just like arguing with my wife - I never admit wrongdoing, but it doesn't change the nature of the punishment. 7 Quote
schirallicpa Posted March 4, 2015 Report Posted March 4, 2015 agreed. doesn't matter what they admit, tax treatment is the same. 1 Quote
JohnH Posted March 4, 2015 Report Posted March 4, 2015 Just like arguing with my wife - I never admit wrongdoing, but it doesn't change the nature of the punishment. Are we married to the same person? 2 Quote
BulldogTom Posted March 4, 2015 Author Report Posted March 4, 2015 Good, because unlawful discrimination gets my client an above the line deduction for the legal fees. As it is, after taxes and legal fees, she will get about 42% of the award and still be in AMT. If she had to put the legal fees on Sch. A, it would be worse. Thanks for confirming my thoughts. Tom Newark, CA 1 Quote
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