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Discrimination lawsuit - all taxable as other income?

Angela1111
Level 2

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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3 Comments 3
IRonMaN
Level 15

Sounds like you have the right idea.


Slava Ukraini!
BobKamman
Level 15

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

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Angela1111
Level 2

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.  

 

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