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Investors & landlords
Yes, most legal settlements are taxable. Enter this information under Income from 1099-MISC, even if you didn't receive Form 1099-MISC. Under this section, check the box for "Lawsuit Settlement." You may deduct any related attorney fees that you paid as an adjustment to the 1099-MISC.
For more info, see: IRS Settlements Brochure
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‎January 19, 2025
12:00 PM