Question

How do I reflect this income? Received payout for personal injury and also for back pay. Did not receive a 1099-misc?

Forum|Forum|5 years ago
May 17, 2021
1 reply
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The payout was made in two installments, both in 2020. Do I report the award amounts, or do I report what was actually paid to me after lawyer fees and costs were deducted? A very small part of the settlement was for lost wages; the lion's share was for personal injury.

TurboTax Deluxe Online

J

JotikaT2

How tax settlements are taxed or not taxed is dependent upon the type of settlement.

Typically, settlements for personal injury are not taxable and would not be reported.

Punitive damages are taxable and will need to be reported.

Please see the following links to help guide you based upon your specific set of circumstances. You will report the award amounts as reported on your 1099-MISC. Since you did not receive these forms, you may need to contact the attorney or issuer of the payments to ensure they were not issued. If they were, your return should match the amounts reported on the 1099 forms.

Tax treatment for legal settlements

Reporting legal settlements

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