Thank you for the quick response. My question is how do I enter a 1099-Misc when only a portion of it is taxable & the remaining amount is an IRA restorative payment? I am not trying to deduct the legal fees and it has nothing to do with a business expense. I'm concerned that if I enter the 1099-Misc full amount of $22,000 that it is going to show I owe taxes on all of that. When in fact, I only owe taxes on the $7,000 that was for legal fees. I am not deducting the legal fees...I am paying taxes on it. The remaining amount has gone back to the IRA account.
Has anyone else out there had this happen to them?
