topic Am I able to claim the payment made to cover a business related out of court dispute? If so, how do I claim this and where? in Deductions & credits https://ttlc.intuit.com/community/tax-credits-deductions/discussion/am-i-able-to-claim-the-payment-made-to-cover-a-business-related-out-of-court-dispute-if-so-how-do-i/01/715595#M94695 <P>The company I work for (1099) was threatened legal actions unless an agreement could be arranged regarding a product that was sold did not meet their expectations.&nbsp; The company and I agreed to split the settlement ($7,500 each).&nbsp; The amount of the settlement was included on my 1099 but I never actually received the money so the full payment was sent from the company.&nbsp; Am I able to deduct this amount from my business income?&nbsp; If so, how do I do this?</P> Thu, 06 Jun 2019 14:36:39 GMT tab2 2019-06-06T14:36:39Z Am I able to claim the payment made to cover a business related out of court dispute? If so, how do I claim this and where? https://ttlc.intuit.com/community/tax-credits-deductions/discussion/am-i-able-to-claim-the-payment-made-to-cover-a-business-related-out-of-court-dispute-if-so-how-do-i/01/715595#M94695 <P>The company I work for (1099) was threatened legal actions unless an agreement could be arranged regarding a product that was sold did not meet their expectations.&nbsp; The company and I agreed to split the settlement ($7,500 each).&nbsp; The amount of the settlement was included on my 1099 but I never actually received the money so the full payment was sent from the company.&nbsp; Am I able to deduct this amount from my business income?&nbsp; If so, how do I do this?</P> Thu, 06 Jun 2019 14:36:39 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/am-i-able-to-claim-the-payment-made-to-cover-a-business-related-out-of-court-dispute-if-so-how-do-i/01/715595#M94695 tab2 2019-06-06T14:36:39Z Since the company paid your share of the settlement and i... https://ttlc.intuit.com/community/tax-credits-deductions/discussion/since-the-company-paid-your-share-of-the-settlement-and-i/01/715598#M94697 <P>Since the company paid your share of the settlement and included the amount as income on your Form 1099-MISC, <B>you can deduct it on your Schedule C expenses</B>.</P> <P>There is not a specific category that makes the most sense for this.&nbsp; It would be easiest to include it in the <B>Less Common Expenses</B> section, using the <B>Other Miscellaneous Expenses</B> category.&nbsp; Doing so will allow you to enter your own description for the expense.&nbsp; </P> <BR /> Thu, 06 Jun 2019 14:36:40 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/since-the-company-paid-your-share-of-the-settlement-and-i/01/715598#M94697 AnnetteB 2019-06-06T14:36:40Z