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1099 Reporting for Personal Injury Settlement Payments: Year and Recipient Clarification
March 12, 2025
Q. A physical personal injury settlement payment was paid to the plaintiff attorney, claimants and bankruptcy trustee. The check was dated 12/17/2024 and sent to the Defendant's attorney for delivery to the Plaintiff attorney. The plaintiffs received and cashed the check January 2025. Only the claimants and the trustee endorsed the check. Would the payor issue the 1099 for tax year 2024 or 2025. Who would receive a form 1099 from the payor?
A.
(Answered by IOFM's third-party tax expert)
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