1099 Misc box 14

[coukell98]

What is the name of your state (only U.S. law)? PA

I received a 1099 misc from General Motors, It was from a lemon law settlement through an attorney. The only box filled in is 14 how do I claim this on my taxes? I use H&R Block basic edition.

 

[ecmst12]

I didn't think settlements for actual damages were considered income? And it couldn't be punitive damages because it didn't go to trial. You should contact your lawyer and ask him why you got the 1099.

 

[LdiJ]

What is the name of your state (only U.S. law)? PA

I received a 1099 misc from General Motors, It was from a lemon law settlement through an attorney. The only box filled in is 14 how do I claim this on my taxes? I use H&R Block basic edition.

You only report the amount of box 14 that is actually taxable.

Box 14 contains the entire amount that your attorney received on your behalf. Your attorney kept some of that for his/her fees, so that portion is automatically excluded from tax.

Of the remaining portion, your settlement paperwork should have spelled out what the money was for. Most likely it was all for compensatory damages, and therefore not taxable, but if any portion was for lost wages, punitive damages, or something else that would be taxable, then a portion may be taxable.

This may be a case where you need to be using a tax professional this year. It really depends a great deal on how much money we are talking about.

How much money shows in box 14?

 

[coukell98]

Thank you very much I will contact the lawyer.

 

[coukell98]

To LdiJ,

The amount is $1900.00. Thanks for the advice.

 

[LdiJ]

To LdiJ,

The amount is $1900.00. Thanks for the advice.

If that is all it is, then I am certain that its nothing more than compensatory damages, therefore it does not need to be included on your tax return.

 

[coukell98]

If that is all it is, then I am certain that its nothing more than compensatory damages, therefore it does not need to be included on your tax return.

Thanks again for your help.

I really appreciate it.