What sexual-harassment victims should know about the new tax law
That bill attempts to change the way settlements are written, distributed and taxed. Right now, settlements are often paid out in a lump sum, which ends up being taxed more heavily than it would be if the money was distributed in installments, said Sunu Chandy, the legal director at Washington, D.C.–based nonprofit National Women’s Law Center. The bill argues that lump sum settlements should be considered nontaxable income entirely. “Even after going through the barriers and the hurdles, and winning or settling, you still end up with nothing — nearly not enough to have compensated you for what you’ve gone through,” Chandy said.