I may receive a settlement, but the lawyers fees will be dramatically more than the settlement. The lawyer says it will be sent as a 1099, and that the lawyers fees will be included. The lawyer also says I can do an above the line deduction to remove or write off the lawyer fees. How accurate would this be? It's a settlement for a work related issue.
The total for the 1099 would be something like 20k, and I would hate to have to pay taxes on the whole thing. The taxes may end up being more than I actually make from the settlement.
