- Membership
- Certification
- Events
- Community
- About
- Help
1099-MISC Reporting: Settlement Payments Made Directly to Clients
March 28, 2025
Q. If a settlement payment is paid to the client instead of the attorney, where does that amount go on the 1099? Is it still box 10 on the 1099-MISC?
A.
(Answered by IOFM's third-party tax advisor)
In this case, there would be no box 10 reporting. Box 10 of 1099-MISC is for lawsuit settlements paid to an attorney (or that flow through an attorney; at any rate the money goes to the law firm). If payment was made directly to the other party you would need to determine if the settlement is taxable…
Become A Member
Join IOFM today as a Professional, Business, or Enterprise Member — or upgrade your Starter Membership — to get access to this content and thousands of other Articles, Webinars, Expert Answers, Resource Downloads, and more!
Naturally, this forum doesn’t allow the kind of full information exchange necessary for the Institute of Finance & Management (IOFM) to provide legal advice and the Expert is not a tax attorney in any event. Please understand that the nature of our responses are limited by these constraints as well as the site’s Terms of Use. If you have further questions or suggestions about how we can improve IOFM, please let us know.
Ask The Expert is a member resource of IOFM and all advice provided is subject to site’s Terms of Use.
What are you waiting for?
