I have a 1099-MISC from Wells Fargo for long term credit damage and fake accounts. How do I offset this 2700?

[eagles2]

I already filed my taxes and will need to amend as I recently received this. Is 2700 for damaged credit score a income or a way to break even on what happened to us

[ToddL · Accepted solution]

You can deduct any out-of-pocket expenses (cash) incurred as a result of Wells Fargo's corporate misbehavior. 

Examples of such expenses would include the cost of a credit repair service, cost of credit monitoring, increased interest on a consumer loan, forfeited deposit on a failed loan application, etc..

If you had these costs, you can enter them on Line 21, Form 1040 using the "Other Reportable Income" interview - for the Description, enter "Wells Fargo Credit Damages", and enter the costs as a negative number (in parentheses)

Go to the Other Reportable Income interview, the very last interview in Wages and Income (Federal Taxes tab > Wages & Income category > Less Common Income subcategory > Miscellaneous Income sub-subcategory). 

(Or enter "other reportable income" in the Search Box and select "jump to other reportable income". These payments are NOT wages).