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Where do I enter the settlement income amount and attorney fees on my tax return?
This was an employer discrimination lawsuit. The settlement amount was $107,500. Total to attorney was $64,089.71(attorney fees:$51,750 + costs advanced by attorney:$12,339.71). I didn't receive a 1099 from the attorney. I received a check for $43,410.29 from my attorney. After reading some questions and answers its still unclear to me how to enter these amounts.
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posted
June 5, 2019
10:34 PM
last updated
June 05, 2019
10:34 PM
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Where do I enter the settlement income amount and attorney fees on my tax return?
Taxable legal settlements (including those from employment discrimination suits) are entered under Income from 1099-MISC, even if you didn't receive Form 1099-MISC.
See these instructions:
https://ttlc.intuit.com/replies/3302162
You can usually deduct legal expenses that you incur in attempting to produce or collect taxable income or that you pay in connection with the determination, collection, or refund of any tax. Legal Fees are included on Schedule A as a Miscellaneous Itemized Deduction, subject to a 2% limitation based on your Adjusted Gross Income. (TurboTax will make this determination for you.)Search on "legal expenses, deduction" and click the "jump to" link to go directly to the start of this topic.
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June 5, 2019
10:34 PM
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Where do I enter the settlement income amount and attorney fees on my tax return?
Same situation and what if my check has already taken out tax? (soc sec, med, fed & state)
May 27, 2020
4:44 PM
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