NECPA in NEBRASKA Posted March 9, 2014 Report Posted March 9, 2014 I have a client that was an attorney employed by a large corporation that is not a law firm. They let her go and then gave her a back bonus on a W2 and a large settlement sum that is called non-wage damages in the settlement papers. We were expecting a 1099 Misc with the amount on line 3, but it is shown as gross proceeds paid to an attorney. Her attorney received his 1099 separately. I am showing the amount on line 21, but wondered if I should also show it on a Schedule C and then back it out as a settlement expense. She was definitely not self-employed and performed no services for the company for this money. She is willing to get her attorney to ask for a new 1099. Thanks! Bonnie Quote
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