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March 18, 2025
Question

1099-MISC

  • March 18, 2025
  • 1 reply
  • 0 views

I received a 1099-MISC of $25,000 by Washington state to reimburse me for my defense attorney fees incurred during a criminal trial.  We won the case because I was wrongfully charged for a crime I didn't commit.  Is this a taxable income?  If so, is there a way to deduct this amount like you do for gambling income?  I'd appreciate a response by anyone who knows about this.  Thanks.

1 reply

KrisD15
March 18, 2025

No, attorney fees are not deductible unless paid as a business expense, paid for an unlawful discrimination lawsuit or against the US Government.

A state is not a US Government payer.

 

 

 

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