[USER]

My husband was let go last Aug on unfair terms and we took it up with an attorney. Long story short we’re soon heading to a mediation.

We’re wondering whether there’d be any tax advantages by taking the settlement in full vs taking it over a period of time.

Any insight would be greatly appreciated.

Thank you!

[Dave]

The only (dis)advantage would be in terms of whether it would bump you up into a higher bracket — you’d have to assess your other expected income to make that determination.

And, as someone who received a wrongful termination settlement myself, I was never presented the option to take it over time — depending on the amount in question, that might be a rather moot point.

[Ezgi]

I forget what the clause is but if they admit discriminatory behaviour then you don’t have to pay taxes on the settlement – vs if they settle to essentially close the dispute.

Ask your lawyer they will know best and can guide you.

[Fatima]

could the employer go out of business/bankrupt?

[Author]

Posts