Discrimination lawsuit - all taxable as other income?

Angela1111 · ‎02-23-2021

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.

IRonMaN · ‎02-23-2021

Sounds like you have the right idea.

Slava Ukraini!

BobKamman · ‎02-23-2021

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

Angela1111 · ‎02-23-2021

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.