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April 8, 2025
Question

I received a check due to a lawsuit filed against my former employer. Where do I submit this information?

  • April 8, 2025
  • 1 reply
  • 0 views
I received a check for a Gross Settlement amount of $2,510.03. Wages were$1,226.17, 1099 MISC were $1,2510.03. Total deductions were $503.34 and Net Wages were $722.83. Were do I submit this information?

    1 reply

    SharonD007
    April 8, 2025

     Non-injury settlements are considered other taxable income. You should receive a Form 1099 if your settlement is taxable. You will be taxed on the income based on the tax bracket that you fall in and the federal income tax rates. 

    Please see the TurboTax article Are legal settlements taxable? for more information.

     

    Refer to the TurboTax Help article Where do I enter an award from a taxable legal settlement?

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