I received a 1099 MISC for a lawsuit settlement. Where can I enter my expenses associated with it?

[Sandlady]

Do I have to do a schedule c?

[DianeW777]

If the law suit settlement was not awarded in relationship to a business activity you had, then it must be reported as other income.

• Are legal settlements taxable?
• Where do I enter an award from a taxable legal settlement?

Can I deduct legal fees on my taxes? Review the information here to see if you qualify for any deduction of those fees. Typically it's only if it's for business use.

If you have more questions please include the details of why you were awarded these settlement funds. 

[Sandlady]

This was a lemon law by back.  I was not reimbursed for all of my expense and they 1099ed me for the $ they paid the attorney.  I was hoping to offset my unreimbursed expenses against the attorney fees.  Is this possible in a non business situation?

[DavidD66]

No, you can't deduct your legal fees or other expenses.  The entire amount of the settlement reported on Form 1099-MISC will be included in income with no deductions for legal fees or other expenses.

[Sandlady]

That sucks, but thank you!

[Sandlady]

Thank you!  Not the answer I was hoping for, but an answer!