Fired April 04 was only female constantly harassed alot emotional stress would go home in tears,I settled out of court May 2006 and told My atty i didn't want to have to pay taxes on my award, now Insurance Co sending a 1099 Misc form for my share after attys fees settlement of 10,000 .Is there any way I can fight this? I settled for alot less and told atty i would't sign unless it was that way.My husband also witnessed this also. Can this be prorated in the 3 years it took, any way around this any suggestions.PLease Help
2007-01-28 10:23:02 · 4 answers · asked by lakota 1 in Politics & Government ➔ Law & Ethics
Hold on, folks...getting a 1099 does not mean it's taxable income. The 1099 is also for payer's records, not just the payee. I get 1099's from companies I represent (I'm a lawyer) and they include costs, which are non-taxable, as well as fees, which are taxable. I see no information in this question that makes me think it's taxable. It's not in lieu of wages, so it's not income in that regard. Damages for pain and suffering aren't taxable, so I'm not sure emotional distress would be. Ma'am, please consult an accountant.
2007-01-28 10:44:20 · answer #1 · answered by David M 7 · 0⤊ 0⤋
An employment award is a substitute for wages you should have earned and unless you suffered physical injuries, all of it will be treated as compensation income. There is one weird case to the contrary in the District of Columbia and if you live there, check with your CPA as to the status of that case. It may well be overturned, but for the time being I think is still out there.
2007-01-28 13:10:50 · answer #2 · answered by mattapan26 7 · 0⤊ 0⤋
It is income, therefore you have to pay federal and state income taxes on it.
2007-01-28 10:35:33 · answer #3 · answered by msi_cord 7 · 0⤊ 0⤋
Is it income? Then pay taxes.
2007-01-28 10:30:46 · answer #4 · answered by ? 3 · 0⤊ 0⤋