Q. Does the attorney have to claim this as income too?
A. Yes.
Q. Did you ever find a work around for this? How did you handle it?
A. This is no workaround. That's the way it is. That's the rules.
The rationale is this: you effectively received all the money, so it is all taxable to you. You then spent some of the money on a lawyer, so that part is also taxable to him.
Q. This seems very unfair and there should be a way to at least not have to claim his money as your income.
A. I agree, but apparently our congress members don't.
