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How do I report a check from a class action lawsuit?

Hello,

 

I asked this question earlier and need more clarification as whether or not to report it. I received a $17 check as part of the reimbursement settlement for a class action lawsuit. Because I was a checking account holder-many years ago-, I was reimbursed for incorrectly and wrongly charged monthly fees.  Does this have to be reported and if so, how do I report it?

 

Thank You.

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1 Reply
MonikaK1
Expert Alumni

How do I report a check from a class action lawsuit?

If you didn't receive a Form 1099-MISC or other information return to report the amount you received, and this was strictly a reimbursement of a checking account fee and not punitive damages, then you don't have to report the amount at all. The exception would be if this were a business checking account and you had previously deducted the amount reimbursed as a business expense.

 

Most lawsuit settlements are reported on a Form 1099-MISC unless they represent back wages. 

 

See this help article for more information about reporting legal settlements in TurboTax.

 

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