1099-MISC Box 10 Gross proceeds paid to an attorney

Forum|Forum|4 months ago
March 7, 2026
1 reply
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In 2025 I received a settlement regarding a work discrimination suit. The settlement was split between myself and my attorney (their fees). I received a W-2 that covered my portion of the settlement along with tax withholding, and a 1099-MISC that lists the attorney's fees in Box 10.

As received, TurboTax expects the 1099-MISC to be associated with a Schedule C, but there is no Schedule C involved as this is not my business.

How do I enter the 1099-MISC into TurboTax in a way that properly reports it? Are the attorney's fees taxable? Should I have received the 1099-MISC as payable to me instead of to my attorney in the first place?

CesarJ

Level 6

The 1099-MISC was issued to your attorney, not to you, so you aren't required to enter it. Your attorney is responsible for reporting that income on their tax return. You should only report the W-2 income on your tax return.

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