dalerit
New Member

1099-MISC

I received a net settlement check of $463 from the Bumble class action lawsuit. The gross recovery was $777 for me, but they deducted $314 to pay attorney’s fees. The 1099-Misc form I received shows the $777 in Box 3. Other Income. Why do I have to pay taxes on the full $777 when I only received a check for $463?