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New Member
posted Jun 5, 2019 10:25:28 PM

I was informed from EEOC & an Attorney that the settlement I received is NOT taxable, but I received a 1099 from the Insurance Company, do I enter this on my tax return

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1 Best answer
Level 7
Jun 5, 2019 10:25:29 PM

Discrimination suits are taxable.

See Are legal settlements taxable?

https://ttlc.intuit.com/questions/2899059-are-legal-settlements-taxable

 To report in TurboTax Desktop

  • Type in lawsuit settlement  in the search box, top right of your screen
  • Click the "Jump to" link in the search results.
  • Follow the onscreen instructions to enter

3 Replies
Level 7
Jun 5, 2019 10:25:29 PM

Discrimination suits are taxable.

See Are legal settlements taxable?

https://ttlc.intuit.com/questions/2899059-are-legal-settlements-taxable

 To report in TurboTax Desktop

  • Type in lawsuit settlement  in the search box, top right of your screen
  • Click the "Jump to" link in the search results.
  • Follow the onscreen instructions to enter

New Member
Jun 5, 2019 10:25:30 PM

Not compensatory damages where there is physical sickness and/or physical injury. Non the less, the Insurance Co. issued a 1099 mics (CYA I expect).  The 'stock answer" is not what I was hoping for, the advice about "deductatbility" was provided me by an attorney AND the EEOC themselves.  What I need is HOW to properly report the 1099, without it developing the whooping $33,000 in tax in the amount you owe field?

Level 7
Jun 5, 2019 10:25:31 PM

Generally, the only deductible is a taxable settlement is legal fees which are an itemized deduction subject to the 2% Adjusted Gross Income limitation.