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RD
RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience:  CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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My wife received a settlemtn for injuries she suffered in a

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My wife received a settlemtn for injuries she suffered in a car wreck. The attorney settled with the insurance company and, after taking their cut, gave my wife a check. They also sent us a form 1099-MISC, but when they gave my wife the check they said the amount shouldn't be taxable. What do I do?
Submitted: 6 years ago.
Category: Tax
Expert:  RD replied 6 years ago.

RD :

IS this settlement for physical injury?

RD :

If yes, than it is not taxable. In which box is it reported on Form 1099 MISC

JACUSTOMER-5b7efu0m- :

Yes, it is a physical injury. The amount is reported in box 3

RD :

You will not report any income from the Form 1099 MISC received for physical injury unless you had claimed medical expenses deduction for such injury on your tax return.

RD :

You may want to include a note to this effect in the tax return.

JACUSTOMER-5b7efu0m- :

How do I do that if I am filing electronically with Turbo Tax?

JACUSTOMER-5b7efu0m- :

Also, do I just ignore the 1099, or do I report it as box 3 on the tax form?

RD :

Turbo tax should allow you to add a statement to your return. Efiling is allowed with such statement.,

RD :

Including the amounts on tax return will increase your tax liability.

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