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How to Report Legal Settlement Payments to Attorneys on Form 1099

February 5, 2025

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Q. An attorney was issued a check for damages for an employee lawsuit. The check was issued to the attorney only. How do I 1099 this? A. (Answered by IOFM's third-party tax advisor) Any amounts transferred to an attorney when services are not rendered to you by that attorney (as in, a legal settlement sent to the attorney of the party suing you) is Box 10 of Form 1099-MISC, gross proceeds paid to an attorney. For further information please see the Form 1099 Master Guide, pages 107-116. 113236

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