USA Sexual Harrasment Settelement, taxable or not?

[Alexander Alexandrov]

I have a client that settled out of court for a case of sexual harassment. She received income on 1099 as Other Income. The case is connected with emotional, no physical abuse. Is the income from the settlement taxable?

 

[Samir]

If there's a 1099 for it and it does not list it as tax exempt, then yes it is taxable.

 

[Alexander Alexandrov]

Yes, there is a 1099 and nothing is listed as tax exempt!. Thanks for the reply!

 

[Kerry Claxton]

Even if 1099 not received it would be taxable, only exempt if physical injury is reason for settlement.