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jbigcat23
New Member

I won a jury verdict lawsuit for $142,000, My atty won his fees of $346,000. I received my 1099 for $488,000. Why am i taxed for $488k total? It will wipe out mine.

even though my attorney received way more then me, judge ordered , not the 33 1/3 kind, but separate, how can I lose all of mine to taxes when i never received nor was supposed to receive the total amount?  Also, my atty also received his 1099 with same $488k, so the IRS will be double dipping on us both... 

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Accepted Solutions
AmandaR1
New Member

I won a jury verdict lawsuit for $142,000, My atty won his fees of $346,000. I received my 1099 for $488,000. Why am i taxed for $488k total? It will wipe out mine.

The issuer of the form 1099-misc (on the form), has completed the form incorrectly, if they reported the full amount to both you and the lawyer. You need to contact the company that issued you the form and have them correct it. They'll need to issue you a corrected form 1099-misc.

If the amount was paid to you, it might make sense for them to issue you the 1099 for the full amount and then you would issue a 1099 to the lawyer for the amount you paid him/her. 

Attorney fees should be in box 14 and depending on what type of reward your payment was, it would most likely be in box 3. You can refer the company to the 1099 instructions: https://www.irs.gov/pub/irs-pdf/i1099msc.pdf

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1 Reply
AmandaR1
New Member

I won a jury verdict lawsuit for $142,000, My atty won his fees of $346,000. I received my 1099 for $488,000. Why am i taxed for $488k total? It will wipe out mine.

The issuer of the form 1099-misc (on the form), has completed the form incorrectly, if they reported the full amount to both you and the lawyer. You need to contact the company that issued you the form and have them correct it. They'll need to issue you a corrected form 1099-misc.

If the amount was paid to you, it might make sense for them to issue you the 1099 for the full amount and then you would issue a 1099 to the lawyer for the amount you paid him/her. 

Attorney fees should be in box 14 and depending on what type of reward your payment was, it would most likely be in box 3. You can refer the company to the 1099 instructions: https://www.irs.gov/pub/irs-pdf/i1099msc.pdf

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