1099 MISC problems

[Archaleus]

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

A few years back, I was injured in an accident and eventually received a settlement for it that was non taxable, but the attorney did send a 1099 MISC form for the amount received under box 3 (other income). I spoke to someone from the IRS and they told me that the only way to get this taken care of was to have the attorney send a corrected 1099 MISC for, but the lady that works in his office said she needed to know what box to put it in and exactly how it needs to be put to get this taken care of. Thanks for the help.

 

[LdiJ]

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

A few years back, I was injured in an accident and eventually received a settlement for it that was non taxable, but the attorney did send a 1099 MISC form for the amount received under box 3 (other income). I spoke to someone from the IRS and they told me that the only way to get this taken care of was to have the attorney send a corrected 1099 MISC for, but the lady that works in his office said she needed to know what box to put it in and exactly how it needs to be put to get this taken care of. Thanks for the help.

If it was truly non-taxable, then no 1099 should have been issued at all. Therefore the solution to the problem would be for them to send a corrected 1099 to the IRS showing zero income.

However, there are distinct rules that determine whether or not a settlement is taxable. Even if the settlement paperwork says that it was non-taxable, it still may be taxable, or a portion of it still may be taxable.

Consult a local tax professional who can look over the paperwork and advise you.