1099 MIC

Forum|Forum|3 years ago
March 1, 2023
3 replies
23 views

I got a 1099R misc. for 133.612.72 from a lawsuit that was paid by the bank I sued, the settlement fund was 133612.75 the net recovery was 80076.95 what was wired to me was 77,544.21 What do I report on because I never got the fund amount

HelenC12

Level 15

Please clarify. Did you receive Form 1099-R or Form 1099-MISC?

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stewart055Author

Level 2

it is a 1099-misc

JamesG1

Level 15

If you received a 1099-MISC for a lawsuit settlement with income in box 3, the income is likely taxable as other income.

In TurboTax Online, in the search magnifying glass in the upper right hand corner of the screen, search for 1099-misc and select the Jump to link
If you're asked Did you get a 1099-MISC?, answer Yes
1. If you've already entered a 1099-MISC, select Add Another 1099-MISC
Enter the information from your 1099-MISC and select Continue
On the Describe the reason for this 1099-MISC screen,
enter lawsuit settlement and select Continue
On the Does one of these uncommon situations apply? screen, select This was money from a lawsuit settlement and then answer the back wages question before selecting Continue.

We do not know the nature of the lawsuit nor whether there were other distributions that may or may not have been taxable. Your legal counsel may be helpful to you.

This TurboTax Help and this IRS Publication may give you insights into the settlement that you received. Contact here should you have questions.

Many individual plaintiffs will no longer be able to deduct the costs and attorneys’ fees associated with non-business related litigation. The Tax Cuts and Jobs Act of 2017 suspended many of those deductions.

@88273 here outlines some cases where an individual may be able to deduct personal legal bills.

@stewart055

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