2 1099s for same settlement

[Rwitvoet93]

I had a settlement last year and I received a 1099 misc for the entire amount from the payer. My lawyer also sent me a 1099 misc with just amount he gave me of the settlement after his fees. My lawyer says I only have pay taxes on what he paid me but being I received a 1099 for the entire amount I am unsure of how that works. Also being i received 2 1099 it almost looks like I’m being given a higher overall 1099 between the 2 than what settlement even was

[ThomasM125]

You should report both 1099 forms on your tax return. Then, enter an adjustment to back out the portion that is not taxable. 

You make the adjusting entry in TurboTax as follows:

1. From the Federal menu in TurboTax find Wages and Income 

2. Find Less Common Income

3. Choose Miscellaneous Income, 1099-A, 1099-C

4. Choose Other Reportable Income

5. Enter a description of the adjustment and the adjustment as a negative number

We would need to know more about the nature of the lawsuit and settlement to know if the legal fees are deductible.