I received a payment from a class action settlement. This isn't related to back pay, medical injury, mental injury, etc. The court settlement document indicates that it is taxable income. I received 2 payments. The first in 2024 for $500 and the remittance states that I was paid $500 because my total payment will be greater than $600 and the IRS requires a 1099 MISC for payments that exceed $600. Now I received a 2nd check in 2025 for $1,404 and the remittance states I will receive the 1099 MISC in Jan 2026 for the TOTAL award payment. They also automatically withheld and sent the IRS 24% of the TOTAL (2024/2025) award in anticipation of owed taxes.
My question is - for my 2024 return, do I report the $500 since that check was cashed in 2024 even though the 1099 MISC I will receive in Jan 2026 is supposed to be for the entire award and will also reflect the withhold for the entire award?
