I settled an ERISA long term disability lawsuit in 2024. I paid taxes on my insurance premiums, so the settlement is nontaxable. However, the insurer issued a 1099-MISC for the entire amount (my portion + my attorney's cut).
Is there some other form they should've used? Should they have sent me a tax form at all? As it stands, I don't think I can efile because I'd need to add an explanation with supporting documents to show exactly what the settlement was for and that I paid taxes on monthly premiums. It's really annoying.
If relevant: In prior tax years, I'd receive W-2s annually with the amount I received, along with the "Third party sick pay" box marked.
