Received a payday loan settlement check from the FTC. I did not receive any 1099 forms but Im sure it needs to be claimed on my taxes. How do I go about this?

nikima99 · ‎June 4, 2019

Opus 17 · ‎June 4, 2019

From what I read, this is a settlement for money that was stolen from you (excess fees deducted from your account without permission). In that case it is not taxable, since it is reimbursing you for actual damages.

Amount in excess of your actual damages would be taxable "other income".

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

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Opus 17 · ‎June 4, 2019

What's the settlement for? Excess interest, lost wages, punitive damages, etc.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

nikima99 · ‎June 4, 2019

Federal Trade Commission won lawsuits against payday loan companies for charging illegal finance fees. Ppl who had used the loans got a settlement check in September 2018.

Opus 17 · ‎June 4, 2019

From what I read, this is a settlement for money that was stolen from you (excess fees deducted from your account without permission). In that case it is not taxable, since it is reimbursing you for actual damages.

Amount in excess of your actual damages would be taxable "other income".

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

nikima99 · ‎June 4, 2019

Thank you!

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Received a payday loan settlement check from the FTC. I did not receive any 1099 forms but Im sure it needs to be claimed on my taxes. How do I go about this?