The company I work for (1099) was threatened legal actions unless an agreement could be arranged regarding a product that was sold did not meet their expectations. The company and I agreed to split the settlement ($7,500 each). The amount of the settlement was included on my 1099 but I never actually received the money so the full payment was sent from the company. Am I able to deduct this amount from my business income? If so, how do I do this?
