I received a settlement check as a pro rata share of a class action against a corporation. Is this taxable income?

[next1cruise]

Hi. I received a settlement check as a pro rata share of a class action against a corporation. Is this taxable income? 

Here is the text from the letter that accompanied my check.

Attached is a check for your pro rata share of the distribution of the Net Settlement Fund in the action entitled KBC Asset Management NV v. 3D Systems Corporation, et al., No. 0:15-cv-02393-MGL (D.S.C.). This distribution has been calculated in accordance with the Court-approved Plan of Allocation described in the Notice of Proposed Settlement of Class Action sent to you with the Proof of Claim.

Please note that the tax treatment of this distribution varies based upon the individual circumstances and tax status of each Authorized Claimant. Accordingly, neither Lead Counsel nor the Claims Administrator is able to determine the appropriate tax reporting for any Authorized Claimant. You should consult with your tax advisor to determine the tax consequences, if any, that this distribution of the Net Settlement Fund may have for you.

Please deposit this check promptly, as it becomes void and subject to redistribution to others if not negotiated by June 24, 2020. lf you have any questions, please contact the Claims Administrator at 3D Systems Securities Settlement, P.O. Box 3170, Portland, OR 97208-3170, or the telephone number or email address noted above.

[JamesG1]

Please review the court document for this case.  I am not an attorney.  See that page 13 addresses taxes.

Have you received any IRS document like a W-2 or 1099-Misc for this settlement?

[beachblues]

In most cases the payment is a partial reimbursement for damages and is not taxable. Additionally the minimum reporting threshold to IRS is $600, so if it is less than this amount which most are, then it has not been reported to IRS as taxable. Lastly if you did not get a 1099-MISC then I would recommend treating it as not taxable.

[KathrynG3]

I noticed @next1cruise that you quoted the correspondence:

Please deposit this check promptly, as it becomes void and subject to redistribution to others if not negotiated by June 24, 2020. 

To clarify, tax returns are filed on the "cash basis." The settlement check is not potentially reportable/taxable until it is actually cashed.

For a general overview but a link about how to enter this in TurboTax, click this article for more information: Are legal settlements taxable?