I received a refund for a claims settlement that was more than I paid in but the claims administrator does not have an EIN number, and I can't send in my completed taxes.in my
I received a refund for a claims settlement that was more than I paid in but the claims administrator does not have an EIN number, and I can't send in my completed taxes.in my
The Turbo Tax program is requiring me to find the EIN for the Kitec Plumbong Litigation Class Action Settlement Administrator who sent me the Settlement payment which I am reporting to the IRS.
The Settlement Administrator seems to not know their EIN and theTurbo Tax program won't transmit my return.
Whether and how much of the amount of a legal settlement is taxable depends on the type of settlement proceeds you received and what they represented; you would need to determine this in order to know whether and where to report it in TurboTax since you don't have a tax document with an EIN.
Check the terms of the legal settlement. If you received punitive damages, this would be taxable income.
Property settlements that compensate for a loss in value of your property that are less than the adjusted basis of your property are not taxable and generally do not need to be reported on your tax return. However, you must reduce your basis in the property by the amount of the settlement. If the property settlement exceeds your adjusted basis in the property, the excess is income.
See this help article for instructions for entering a legal settlement in TurboTax. If you didn’t receive a 1099-MISC:
Legal fees related to personal issues typically can't be included in your itemized deductions under current law. See this tax tips article for more information.