- Membership
- Certification
- Events
- Community
- About
- Help
1099 reporting of damages and attorney fees
February 3, 2023
Q. If $10,000 was paid to a claimant for compensatory damages and a separate check paid in the amount of $5,000 to claimant's attorney for attorney fees, would both receive a 1099-MISC? Would the claimant receive a 1099-MISC box 3 for $15,000 (compensatory damages $10,000 plus attorney fees of $5,000) and the attorney receive a 1099-MISC box 10 for only $5,000?
A.
(Answered by IOFM's third-party tax experts)
If the $5,000 check was the only check on which the attorney was a payee, a Form…
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?
