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Level 1

I had a legal settlement of $ 2500 and I received 1099-Misc form for it. But the actual cash settlement, less the "expenses" was around $ 250. How should I report this?

I didn't generate a profit and the $2500 increases my tax bill. How can report the expenses to reduce my tax owed?

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Level 12

I had a legal settlement of $ 2500 and I received 1099-Misc form for it. But the actual cash settlement, less the "expenses" was around $ 250. How should I report this?

There may be a better way, but one work around would be to enter the 1099-misc again with a negative amount in box 3 reflecting your expenses.  If an explanation is allowed enter  “expense offset for 1099-misc.”

4 Replies
Level 12

I had a legal settlement of $ 2500 and I received 1099-Misc form for it. But the actual cash settlement, less the "expenses" was around $ 250. How should I report this?

In what box in the 1099 was the amount?
Level 17

I had a legal settlement of $ 2500 and I received 1099-Misc form for it. But the actual cash settlement, less the "expenses" was around $ 250. How should I report this?

what kind of settlement?
Level 1

I had a legal settlement of $ 2500 and I received 1099-Misc form for it. But the actual cash settlement, less the "expenses" was around $ 250. How should I report this?

The amount was in box 3; the legal settlement was for nuisance calls to my cell phone...
Level 12

I had a legal settlement of $ 2500 and I received 1099-Misc form for it. But the actual cash settlement, less the "expenses" was around $ 250. How should I report this?

There may be a better way, but one work around would be to enter the 1099-misc again with a negative amount in box 3 reflecting your expenses.  If an explanation is allowed enter  “expense offset for 1099-misc.”