Sexual Harassment Settlement Subtraction

If you receive a financial settlement from your employer in a sexual harassment or sexual abuse settlement, your employer cannot make it part your wages or severance pay whether or not your settlement includes a nondisclosure agreement.

On your Minnesota return, you may subtract the amount of damages you received under a claim that was not excluded from federal adjusted gross income under Internal Revenue Code, section 104(a)(2). This applies to damages received after December 31, 2022.