Yes, the entire amount received that is in "excess" of your
refund is taxable income, including punitive damages (penalties). The
portion that is restitution is not taxable. Form 1099-MISC that you received should have all the information you need. Any version of TurboTax for Desktop can be used to report this income.
The attorney fees, which includes any amount paid to the attorney, may be claimed under the Deductions and Credits >> Other Deductions >> Legal Fees.
Additional Info:
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
