How much tax would you pay on a $404,000 settlement award?

Question

A friend won a $404,000 settlement against a previous employer. How much would she take home after taxes?

Answer 1

Well I wouldn't pay any taxes because I don't believe in them.  It's slavery by the government......

Answer 2

That will depend upon her total income.  Unless the award was for physical injury or illness, it's generally fully taxable.  As a VERY general rule, upwards of 1/3 of it will go to Federal taxes, plus whatever tax the State may levy in it.