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Eeoc Settlement Taxes

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I paid an attorney $7,500 over two years to represent me as I filed my EEO against my previous employer. We settled for $15k in 2024. They cut me a check for $7,500 and sent my lawyer a check for $7,500 (they agreed to pay my legal fees). Since I had already paid my attorney, he cashed the settlement check and wrote me a check for $7,500. So now I have $15k. I have to pay taxes this year.

How does this work? Am I taxed on all $15k? Or since the settlement agreement says they will pay me $7,500 and pay the attorney directly $7,500, I am only taxed on the $7,500 that I was paid by the company for the settlement?

Can I write off my $7,500 attorney fees if I paid them over 2023 and 2024? I don’t understand how I can be taxed on $15k if I only actually won $7,500.

My state does not have state income taxes. I’m specifically concerned with the federal taxes only.

Any assistance would help. This is super confusing to me.

submitted by /u/Info__share
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