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Received 1099-misc from the SSA for attorney's fees received from my cases. I didn't receive money, it goes to my firm who will pay Taxes. How do I file without paying?

Trying to avoid the IRS from getting  double taxes 

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1 Reply
CathiM
New Member

Received 1099-misc from the SSA for attorney's fees received from my cases. I didn't receive money, it goes to my firm who will pay Taxes. How do I file without paying?

If you cannot get the SSA to correct the 1099-MISC, there is a way to enter it on your tax return, so you won't be taxed. 

First, include it in your tax return as self-employment income.  Enter the information from the 1099-MISC into TurboTax as it is on the form.  Second, enter the same amount in the cost of goods section "Other costs" in the self employment section.  You can call it "assignment of fee income" or whatever term you feel is appropriate.  It will come out as $0 income on Schedule C and you will not be taxed.  Make sure you get documentation from the firm that they deposited the checks into their account and keep if for your records.

It is not unusual to see this error on 1099-MISC and it is sometimes difficult to get the issuer to correct it.  If you have the documentation to show that this is the substance of the transaction, that you received no direct benefit, you can report it this way.  

Here is helpful article for recording 1099-MISC in TurboTax:

https://ttlc.intuit.com/replies/4944762

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