Settlement for 250K. Has to be taxed wages. Do I want 1099 or W-2? A mix? That does not include atty fees, another issue for later.

[GES12]

They are giving me a choice. I can call a large part of emotional distress damages, but I have zero medical expenses, so it will be taxed.

[npierson7 · Accepted solution]

If they give you Form 1099 for your settlement amount, you might be able to deduct attorney fee or other fees you paid in connection with the settlement amount, so it might be a better choice for you.