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New Member
posted Jun 4, 2019 1:33:12 PM

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

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

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1 Replies
New Member
Jun 4, 2019 1:33:13 PM

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.