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Why is my lawyer giving me a W-9 for an insurance claim?

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abstractran

Junior Member
California-

I used a lawyer to help me settle an auto insurance claim. The lawyer took her 20% cut of the insurance claim which was under $2000. Why did she make me fill out a W-9 form?
 


davidmcbeth3

Senior Member
The client or company will use the information collected on the W-9, or substitute W-9, to produce a Form 1099 which details the earnings that the independent contractor received from that client that tax year. The Form 1099 is sent to both the independent contractor and the IRS; some states may also require a separate mailing of the 1099 as well.

Looks like you may have some taxable money coming to you .. you will have to pay taxes --- at least thats what your attny thinks. Did you ask about the tax implications with the settlement? This vary by settlement terms. Some settlements can be taxable , others not. Impossible to say from here -- you can contact an accountant.
 

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