Should there have been tax taken out of my settlement?

[thacher]

This year I received a settlement for back pay. In that check, there was money withheld for federal income. I also received a separate check from the settlement for being one of the first five plaintiffs to step forward in this class action lawsuit. Money was NOT withheld from that check. Was that taxable income?

[jasper]

money for back pay would be taxable like regular wages the appropriate taxes should have been withheld
the settlement for your heroics will not be treated as wages and fully taxable

[gustav]

Both are taxable. The wage part is subject to withholding just like regular wages.

[delrico]

It's taxable income, but is not taxable wages. It's treated as punitive damages. Income taxes are due on it but not FICA taxes.