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Level 3
February 23, 2021

Discrimination lawsuit - all taxable as other income?

  • February 23, 2021
  • 2 replies
  • 7 views

Hi! New here to the Proseries Community. Client had a sexual assault and harassment case but got settled in mediation as discrimination. She received a 1099-MISC other income for $93K and her attorney got one as well. Assuming this is all taxable, correct on line 8 other income. 

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    2 replies

    IRonMaN
    Level 15
    February 23, 2021

    Sounds like you have the right idea.

    Slava Ukraini!
    BobKamman
    Level 15
    February 23, 2021

    So did she receive the $93K before or after attorney fees?

    Level 3
    February 23, 2021

    Her settlement was for $150K.  Her attorney got the difference. The $93K she actually deposited and didn't have any other legal fees since it was paid on contingency.