It was a harassment settlement, and after the lawyer’s cut I will be getting $35K & need to allocate it towards negotiating my other debts. I want to make sure I set aside enough for taxes. Can you help me plan?
i am receiving a small settlement and want to be sure that I set aside enough for taxes, but I can't find the tax rate for my type of settlement. Can you help?
Taxes will be based upon your income. Ballpark 25 - 28%, or talk to an accountant
All of that kind of settlement will be taxable as ordinary income. The attorney’s fee can be deducted as a miscellaneous itemized deduction. If you normally take standard deduction, you won’t this one time so gather up documentation for what other itemized deductions you have.
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