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Old 01-31-18, 10:01 AM   #1
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Counslrman's Avatar
Join Date: Feb 2006
Location: Columbus, GA
Posts: 6,423
Default Tax question...?

We received a judgement check from a class action suit I knew nothing about until I got the check. It was something about some subsidiary of our lender having misreported earnings and charging too much interest...gobbledy -gook wording in the explanation...

...anyhow, I cannot find in the 1040 instructions how to deal with this...???


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Old 01-31-18, 10:41 AM   #2
Join Date: Aug 2004
Location: Dalton, GA USA
Posts: 1,288

I'm not a tax accountant, but as best as I can remember, proceeds from lawsuits are similar to insurance payments, non-taxable.
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Old 01-31-18, 11:30 AM   #3
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Join Date: Jun 2004
Location: Johns Creek, GA
Posts: 7,006
Default Tax question...?

Well, yes they can be.

You should (in theory) receive a 1099 Misc with Box 3 checked.


How do I report a settlement from a class action lawsuit in Turbotax?

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Last edited by Trout8myfly; 01-31-18 at 11:47 AM.
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Old 01-31-18, 02:19 PM   #4
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Join Date: Aug 2008
Location: Blue Ridge, GA
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Yes you should receive a 1099. I got a judgement last year from a class action lawsuit and got a 1099 for it. I liked getting the check but didn't like it as much when tax time rolled around.
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Old 01-31-18, 11:50 PM   #5
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Join Date: Oct 2010
Location: NE Gwinnett
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If my memory serves me well, if the amount is a relatively small amount, i.e., a few hundred dollars, the check writer is not required to provide a 1099. You are probably still responsible for reporting it, unless it was the loss of property, etc.,

You can take that advise and a dollar and get a cup of coffee at McD.
Want to hear God laugh? Tell Him your plans.
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