Solved: I received money from 3 class action lawsuit settlement for the amount $5, $7 and $4. Do I need to report this as income under MISC income? If yes, can together or sepr?
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I received money from 3 class action lawsuit settlement for the amount $5, $7 and $4. Do I need to report this as income under MISC income? If yes, can together or sepr?

I received money from  3 class action lawsuit settlement for the amount $5, $7 and $4. Do I need to report this as income under MISC income?

If I need to report this then can I add these amount and report it as single transaction of $16 or I need to list all the three different payers?
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Level 7

I received money from 3 class action lawsuit settlement for the amount $5, $7 and $4. Do I need to report this as income under MISC income? If yes, can together or sepr?

If you wanna report it, stick it under true "miscellaneous income" (NOT to be confused with Form 1099-MISC income); no need to separate the payers. Those small checks aren't being reported to the IRS, and depending on the circumstances of each class action they may OR may not be taxable. (For example, if it's an overcharge for some non-deductible fee you paid it's not taxable; you just got back money that was already taxed and not deducted.) If you're still honoring your Boy Scout oath you wanna report it, but proper tax accounting for $16 isn't worth the money; it might not even increase your taxes (most amounts in the tax tables are in $50 increments).

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2 Replies
Level 7

I received money from 3 class action lawsuit settlement for the amount $5, $7 and $4. Do I need to report this as income under MISC income? If yes, can together or sepr?

If you wanna report it, stick it under true "miscellaneous income" (NOT to be confused with Form 1099-MISC income); no need to separate the payers. Those small checks aren't being reported to the IRS, and depending on the circumstances of each class action they may OR may not be taxable. (For example, if it's an overcharge for some non-deductible fee you paid it's not taxable; you just got back money that was already taxed and not deducted.) If you're still honoring your Boy Scout oath you wanna report it, but proper tax accounting for $16 isn't worth the money; it might not even increase your taxes (most amounts in the tax tables are in $50 increments).

View solution in original post

New Member

I received money from 3 class action lawsuit settlement for the amount $5, $7 and $4. Do I need to report this as income under MISC income? If yes, can together or sepr?

These checks are from class action law suits like Redbull, Dell, Samsung etc.. who pay millions of user.. everyone in class action get few bucks like I mentioned above...so I referred some other comment on thread and they asked to add it under 1099 MISC and add "This was money from lawsuit settlement". Are asking me to add this under Less common income>>Miscellaneous Income ? If these are not reported then I can totally skip it. Please advise.
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