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Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.
So, your award was to pay you back for money that you lent to the defendant?
Did you ever claim a deduction on your taxes for an uncollectible debt?
If this is simply returning money that you lent to someone else, this is not taxable. However, if you took a deduction for business or nonbusiness bad debt, you would need to include the amount you deducted as income on line 21 of your tax return
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