If I obtain money either from trial or a pre-trial settlement, will I have to pay taxes?

I am not a tax professional and do not give tax advice. You should see a tax professional to determine whether and the extent to which you will have to pay taxes on your settlement or award. However, successful plaintiffs in employment cases are required to pay taxes on their settlements or awards. Awards and settlements in wrongful termination and discrimination cases usually represent lost wages and emotional distress damages - both of which are taxable. Your attorney will be responsible for any taxes on his or her attorney's fees.