I got judgement of $18,000 reimbursement for special education private school tuition. I got 1066MISC. How do I file.

[jeanholman]

My lawyers said I should not have to pay tax on judgement since it was reimbursement not damages.

[Phillip1]

Given that the judgement was reported on Form 1099-MISC, this will need to be reported as income on your Form 1040 to the IRS. If the lawyers believe this qualifies as a nontaxable settlement, they should contact the payer to correct the 1099-MISC. Usually a nontaxable settlement for physical damages is not reported on a 1099-MISC.

The judgement will need to be reported as income on line 21 of your Form 1040. If the tuition has not been deducted as a medical expense in prior years, you will be able to deduct the tuition as a medical expense on this year's return.