Discussion:1099-MISC for out of court settlement award
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Revision as of 01:14, 5 June 2006
Discussion Forum Index --> Tax Questions --> 1099-MISC for out of court settlement award
DR BRISKET (talk|edits) said: | 5 June 2006 |
| Client (who I filed an extension for 2005 personal taxes) received over $65,000 in an out of court settlement for a case involving the wrong application a chemical lawn treatment. In addition to killing her lawn, vegetation and trees, her health was affected. Client incurred substantial medical bills in addition to the cost to restore her landscaping. Attorney fees were deducted from the total proceeds the client received. The 1099 MISC thus represents only the net settlement proceeds she received. I was totally shocked to even see a 1099 as I did not think such proceeds were usually 1099 reportable. I could certainly use some expertise advise on how to proceed from here. Thanks. | |
