Hi, I recently got a settlement check from a previous employer, due to wrongful termination. During my time of unemployment/disability my aunt helped me through a lot, she paid my tuition, some medical bills, let me stay with her as needed and even gave me an old car. She never expected anything in return, but now that I have this settlement I would like to sign the entire thing over to her as a thank you, but I don't want to deal with the taxes, she would be responsible for the taxes and I know she would be okay with that. The problem is it came with a 1099-MISC, how can I get that put into her name/SSN so I can just sign this check over to her and let her pay the taxes on it? OR if I just give her the 1099, would she be able to pay the taxes on it next year and just include an explanation to the IRS that the check was signed over to her and that's why she's paying the taxes on it?
You cannot avoid the taxes by signing over the check to someone else.