I agree, the audit guide says that sexual harassment settlements are taxable.
You also say "wrongful termination". Is that for missed pay?
As for box 7 ... that is usually for "services" ... sexual harassment ... hmmm. 
I agree, the audit guide says that sexual harassment settlements are taxable.
You also say "wrongful termination". Is that for missed pay?
As for box 7 ... that is usually for "services" ... sexual harassment ... hmmm.