IRS Pub. 4345 doesn't help answer whether proceeds from a Settlement is to be included in income. I did not receive a 1099 and the ftc.gov/refunds page is of no help either.
I don't know if I'm supposed to report it under the Miscellaneous Income heading-> click Other Reportable Income. IRS Pub. 4345 states the settlement proceeds are reportable in my income but that depends on facts and circumstances in the case.
The only facts and circumstances I know about the settlement was a letter included with the check that said according to the Federal Trade Commission, LifeLock violated a court order and made misleading claims about its services and that they failed to properly secure their customer's data. Because I was a LifeLock subscriber during the years 2012-2014, I am getting this check.
I can't make a determination whether this payment is supposed to consist of allocations for say, emotional distress and mental anguish under IRS Pub 4345. The publication makes it sound like I'm supposed to have to pour through records of Federal courts and after I find the case, read the dockets and court case file.
Seriously?
