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Level 2
July 28, 2026
Question

1099 NEC?

  • July 28, 2026
  • 1 reply
  • 19 views

I received a 1099 NEC for settlement in a sexual harassment lawsuit. It was issued as a 1099 NEC not MIsc. Since this is reported as 1099 NEC non-employee comp, can I deduct the attorney fees associated with the case?  They were paid from the amount in Box 1 non-employee compensation. No taxes were withheld and no other information or amounts in any box other than box 1. I had no other 1099/ SE income for that year. I did have w-2 income.  

    1 reply

    M-MTax
    Level 15
    July 28, 2026

    You should be able to deduct the fees since sexual harassment is a form of unlawful discrimination under Section 62[e]