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Reporting payments for pain and suffering damages
February 24, 2023
Q. If a settlement is paid to a patient or former employee for punitive damages or pain and suffering, would it be reported the same way on 1099-MISC in Other Income box? When would a settlement not be reported on 1099-MISC or 1099-NEC?
A.
(Answered by IOFM's third-party tax experts)
Form 1099-NEC reports payments made as compensation for services performed by an individual who's not an employee of your company or for services provided by a reportable entity; thus the 1099-NEC isn't used for…
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