Thanks
Just to be clear...I have incured about $14k in legal expenses and it looks like the tax law specifies that I have to report the full settlement amount and then deduct my legal expense (for income tax). But for SS & Medicare tax, shouldn't I deduct the $14k first, before calculating SS & Medicare. For Income tax, it's a whole different calculation.
Obviously, I am going to find the specific tax law but I'm getting all the free advice I can here - thanks
This is fairly important because I beleive under the Obama "stimulous", I only have to pay 4.2% for SS, vs the normal 6.2%. And I think the employer still has to pay the full 6.2%. And I definately do not want to pay the full 4.2+6.2 myself.
Thanks to all you experts out there.