Lawsuit Settlement with 1099 MISC
Level 2

Lawsuit Settlement with 1099 MISC

Hi,

 

My attorney represented me for a civil lawsuit. We settled the case in 2019 and I received a 1099-MISC from one defendant with a full amount of 8000 dollars presented in the 1099-MISC as a part of our settlement, it is not a bodily injury or emotional, thus I am quiet sure it's taxable according to my research so far. However, I only received 1000 dollars because according to my contract with my attorney, I will only get 20% from the final settlement and if any exceed 1000 USD, I will only receive 1000 dollars, thus, I only got 1000 dollar instead of 8000 dollars. 

 

Given the fact that I actually received the 1099-MISC under my name for the full amount of 8000 dollars, I wonder how I can fill my tax return properly in order to not responsible for the other portion of 7000 dollars that was deducted by my attorney for legal fee? Thank you very much for your professional advise and help! 

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