My former employer paid my attorney as part of a settlement. The employer reported the attorney fees on a 1099-MISC. Do I pay taxes on the attorney fees?

[JamesG1]

You received the 1099-MISC.  But does the 1099-MISC list you and your social security number as either the payer or the recipient?

Does it list anything in box 10 for gross proceeds to an attorney?

[Angsmith313]

No it does not reference attorney fees and my SSN is not on the 1099. 

[Angsmith313]

The 1099 does reference a TID number under Payee and a number 1 for recipient. 

[JamesG1]

If your name is not listed as the payer or the recipient, and your social security number as not listed as the payer or recipient, I suspect you are in the situation discussed by DanielV01 above.  His statement begins You have nothing to report.

However, I do not understand why the 1099-MISC does not reference attorney's fees or box 10.

[Angsmith313]

Thank you all! I sincerely appreciate all the advice. 

[Angsmith313]

Wait...one more thing. Apparently I do need to report the 1099 on my 2019 tax return to prevent any issues going forward. The only way I found was to report above the line on the 1040. This will give me an advantage on my adjusted gross income. Of course this would be very kind of the IRS...and certainly appreciated yet, that would be way to kind, LOL.  Advice on how to log this...

[ThomasM125]

To report this as "other" income on your form 1040, proceed as follows:

1. Go to the "Federal" section of TurboTax

2. Click on "Income and Expenses"

3. Find "Less Common Income" and choose the last entry "Miscellaneous Income"

4. On the next screen, "Miscellaneous Income" choose the last entry "Other Reportable Income"

5. Enter a description for your entry and enter the taxable amount you want to add or subtract from your income

[Angsmith313]

***Update*** 

I was advised today that the above statement is correct. However you must first put this in as a positive number example +$5,000 then add a line and use a negative number -$5,000.  Although it is an above the line deduction it cannot give the taxpayer an advantage on their taxable income. I thought that it was to good to be true 🙂