What is the name of your state (only U.S. law)? WA state
I am asking for an elderly lady ...
She got a employment lawsuit settlement..employment was back in 2014 in State of IL because she was underpaid and lawsuit was settled in 2017 so received w2 for $10750 and same amount on 1099-misc (non employee compensation checked) ... total $21500
1099-misc was not only for penalties but was also for liquidated damages...(its not specified how much for each)...so I understand penalties are taxable income but what about liquidated damages? by the way it was govt. provided attorney so she did not pay any fees but lawyer said he could have charged $4k for this lawsuit.
Because of this unanticipated income she needs to refund $300 she received as premium credit under obamacare... reason...she earned more income than you estimated when you enrolled in your plan (she did know when the lawsuit will settle)
not only that...employer did not withdraw any federal income tax (employer did withdraw $240 for IL state income tax) so now she owes 1300$ ..
Is there any way to avoid reporting this income in 2017 ...and report it in 2014 when real employment was there? if not ..is there any way she can save on that 300$ obamacare premium tax credit refund?
I am asking for an elderly lady ...
She got a employment lawsuit settlement..employment was back in 2014 in State of IL because she was underpaid and lawsuit was settled in 2017 so received w2 for $10750 and same amount on 1099-misc (non employee compensation checked) ... total $21500
1099-misc was not only for penalties but was also for liquidated damages...(its not specified how much for each)...so I understand penalties are taxable income but what about liquidated damages? by the way it was govt. provided attorney so she did not pay any fees but lawyer said he could have charged $4k for this lawsuit.
Because of this unanticipated income she needs to refund $300 she received as premium credit under obamacare... reason...she earned more income than you estimated when you enrolled in your plan (she did know when the lawsuit will settle)
not only that...employer did not withdraw any federal income tax (employer did withdraw $240 for IL state income tax) so now she owes 1300$ ..
Is there any way to avoid reporting this income in 2017 ...and report it in 2014 when real employment was there? if not ..is there any way she can save on that 300$ obamacare premium tax credit refund?