topic Class Action Suit Settlement and 1099-MISC in Get your taxes done using TurboTax

Class Action Suit Settlement and 1099-MISC

larryc519 — Mon, 06 Feb 2023 16:31:20 GMT

In 2022, I received a check for almost $900 as part of a class action settlement, specifically Shields vs. Metropolitan (https://shieldshachatdepreciationsettlement.com/). I never received any tax form, either a 1099-MISC or 1099-INT, from the administrators. This morning, I called the contact number for the settlement administrators and was told that they have not, and do not plan to, issue any 1099 form for the settlement amount. They also would not provide me with an EIN (Federal Tax ID) for the settlement.

When I used TurboTax Deluxe 2022 to fill out and file my federal income tax return, including the class action settlement payment, the program informed me that an EIN (Federal Tax ID) is required to report the income.

I can't file my federal income tax without that number. Since the settlement administrators aren't planning to issue a 1099 for the payment, can I just not report the income? What other recourse do I have?

Larry

Re: Class Action Suit Settlement and 1099-MISC

TomK2023 — Mon, 06 Feb 2023 17:01:33 GMT

Enter it as other Income reported on line 8z of Schedule 1.

Open your return.
Search for "other income" in Search box.
Click on "jump to other income" link.
Answer No to "Did you receive a 1099-MISC?", and proceed through interview screens.

Re: Class Action Suit Settlement and 1099-MISC

Mike9241 — Mon, 06 Feb 2023 17:12:11 GMT

the administrator has no way of knowing whether the settlement is taxable or not. for some, it would be for others not. you filed an insurance claim for structural loss to real property. supposedly you were shorted the payments. so if you took a tax deduction for the loss you deducted too much by the amount of the recovery. if not it's tax-free and not reported.

Re: Class Action Suit Settlement and 1099-MISC

larryc519 — Mon, 06 Feb 2023 17:41:14 GMT

Thanks, TomK2023, for providing an alternate way to report this income. The question remains as to whether the income is actually taxable (see below).

Larry

Re: Class Action Suit Settlement and 1099-MISC

larryc519 — Mon, 06 Feb 2023 17:44:30 GMT

Thanks, Mike9241. I did not take a tax deduction for the loss (I took the standard deduction), so based on this it appears the settlement is tax-free and I don't have to report it.

Larry