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1099 reporting of non-medical settlement payment
February 1, 2023
Q. For a non-medical settlement payment of $600 or more payable to the claimant's attorney, should both parties receive a 1099 form? Should the attorney receive a 1099-MISC (box 10) and claimant a 1099-MISC (box 3) both for the gross amount paid to the attorney?
A.
(Answered by IOFM's third-party tax experts)
Yes for a non-wage damages settlement which is not excluded from taxable income of the claimant, the claimant is reported as Recipient on a Form 1099-MISC reporting the full settlement…
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