1099-MISC for discrimination case - unused sick and vacation time

[unicorn1116]

I received a 1099-MISC for an age discrimination case settlement.  This was so stressful, that I just asked for my unused vacation and sick leave.  Is that taxable?  And if so, that is just added to my regular income.  I also should be able to deduct my attorney's fees, but not sure where that is done.

[BrittanyS]

Yes, settlement income received from a lawsuit is generally tax deductible unless those fees were from sickness or injury.  Unfortunately, attorney fees are not deductible from your taxes.  The 1099-MISC is entered into TurboTax by following these steps:

1. Click Wage & Income
2. Scroll down to Other Common Income and click show more
3. Click Start next to 1099-MISC
4. Click Add 1099-MISC
5. Fill in interview questions using 1099-MISC

For more information on tax implications of settlement income see the links below:

Tax implications of settlement income

Can I deduct legal fees?

@unicorn1116