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Do I have to pay taxes on a settlement I did not receive?

I was a part of a settlement and received a check, which I now realize I did not cash and is now void. The administrator of that lawsuit will not reissue the check to me. Since I believed I cashed the check, I filed a 1099-MISC and W2 for the settlement amount. Can I amend my taxes since I did not actually receive the money?

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2 Replies

Do I have to pay taxes on a settlement I did not receive?

when you got the check, the IRS regards it as you having received the income regardless of whether you cash the check or not. under current tax law there does not seem to be a way to get a deduction for the uncashed check. 

Do I have to pay taxes on a settlement I did not receive?

You received the money.  You had control over the check, and assuming the check was good at the time, it's taxable to you at that time, even if you later forgot to cash it.  Sorry. 

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