1099 Misc

Jim1959 · ‎January 31, 2020

My Wife received an 1099 Misc. for over payment of benefits that she paid. Is it taxable

GiseleD · ‎January 31, 2020

It is highly likely that she will have to pay taxes on this income. Can you provide some more details on why it was issued so that we can provide guidance on how to enter it?

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Jim1959 · ‎February 2, 2020

It was part of a lawsuit settlement by large group of employees that were over paying for health care insurance.

DavidS127 · ‎February 3, 2020

Typically, a lawsuit settlement payment reported on a 1099-MISC amount is for attorney's fees, punitive damages, emotional distress, other physical injuries, and prejudgement interest. Depending on the nature of this payment, it may be taxable.

This IRS Publication 4345 on Settlements Taxability has the specifics on what portion of a lawsuit s.... Use it as a guide for how to answer TurboTax questions about your wife's 1099-MISC.

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