1099-Misc

[Pro]

I received 1099 misc from litchen Liss Riordan verses uber 

it’s a settlement payment 

line 3 shows total settlement amount including attorney fees ( attorney fees which I never received they took it upfront) but included it in my total settlement 

line 4 shows federal income taxes 

but separately in the breakdown it shows they took the attorney fees 

my question is do I need to pay taxes for attorney fees too? 
same goes with CA form 582-B 

line 1 shows total settlement included attorney fees and 

line 3 shows tax withheld 

thanks 

[Paul_W1]

Hi Pro,

You received 1099-Misc possibly for lost wages.  In general, I have not seen 1099-Misc for withholdings to be taken out.  As for the CA 582-B, you are not a non resident and possibly were a former CA resident so therefore after this settlement the state of CA is requesting withholdings from the settlement.  I have only seen a few instances of such.  Perhaps you can provide me context to this post.  I reside in CA as a tax expert and am pretty sure you were a resident here at some point.

[Pro]

Hi 

thanks for the response 
I am still not sure since you didn’t mention about whether do I need to pay taxes for attorney fees ? Which I never received but included in my 1099 misc thanks 

[Hal_Al]

More on attorney fees:

https://turbotax.intuit.com/tax-tips/tax-deductions-and-credits/can-i-deduct-legal-fees-on-my-taxes/...