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Would an award in a Title VII lawsuit be subject to SE tax? The award was taxable as income. Any help on this. I did not meet the max social security amount with my normal working pay.

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<<Would an award in a Title VII lawsuit be subject to SE tax? The award was taxable as income. Any help on this. I did not meet the max social security amount with my normal working pay.>>

I'm not that familar with Title VII suits...so I'm not sure exactly what you received. Some payments can be both compensatory and punitive damages...some of which may be taxable and some not.

But I can tell you that if the payments that you receive are non-taxable, they also will not be subject to SE taxes...at least as I understand the law.

So I would suggest that you contact your attorney. The people who deal in these issues on a daily basis would have a much better understanding of all of the issues...both tax and legal.

TMF Taxes
Roy

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