civil suit with no 1099 received

[skex42]

i did not received a settlement check for $ from this settlement and i did not get a 1099 for it.  Am i responsible for claiming it?  i was a member of a class action with wells fargo for them having a faulty calculation in their software that they knew about for years but did nothing.  house was in foreclosure.  the first check i received was not a settlement check, but a good faith attempt for WF to show the court they were trying to "make it right".  This first check was in 2021.  Then in december the civil suit settled and i received 2 more checks.  one for the settlement and one for emotional distress.  I was part of the supplemental class.

https://www.homeloanmodificationsettlement.com/faq/supplemental

[MarilynG]

Since you haven't received a 1099-Misc, you may receive one in 2022.  There should be some contact info in your letter or other documents you received to verify this.  You could then report this on your 2022 taxes. 

Some parts of a settlement may be taxable and some may not.  

Here's some info about Lawsuit Settlements. 

IRS Info on Settlements and Judgements. 

[skex42]

Thanks for this! The checks that I received said nothing about them issuing a 1099.  They did say that the settlement may be taxable and it’s up to me to determine that.  So here I am! 

[MarilynG]

Here's a link to IRS FAQ's on Settlements that may help.

It sounds like an 'emotional distress' settlement would not be taxable, if you did not previously claim a deduction for Medical Expenses. 

It also says that monies you received relating to the value of your home would not be taxable, but are subtracted from your Cost Basis (what you paid for the house, plus improvements) when you sell. 

'Punitive Damages' would be taxable, as well as any 'Interest'.  

For 2021, it would depend on how the amount you received was classified.  It it was a 'Base Payment' not representing any type of  'reimbursement' it may be taxable.   Any payments for 'reimbursement' in this case would not be taxable. 

This link also has info on Reporting Mortgage Settlement Payments.