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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13128
Experience:  15years with H & R Block. Divisional leader, Instructor
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I just paid a lawsuit settlement and need to issue them a 1099 JA:

Customer Question

I just paid a lawsuit settlement and need to issue them a 1099
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: I have her information where do i get the for or is there anyone who can help me fill it out ?
JA: Is there anything else the Accountant should be aware of?
Customer: no , it was a settlement for un paid wages
JA: OK. Got it. I'm sending you to a secure page on JustAnswer so you can place the $5 fully-refundable deposit now. While you're filling out that form, I'll tell the Accountant about your situation and then connect you two.
Submitted: 5 months ago.
Category: Tax
Expert:  Robin D. replied 5 months ago.
HelloIf you have paid this based on a business requirement then you can obtain the form at any business supply store (Staples). The 1099MISC comes in a pack and also has teh 1096 that is used to list the 1099s that were issued. Generally, if the person receiving the funds is a past or present employee, and the payment is for past, present or future wages or other employment compensation, form W-2 must be filed and given to the employee for the taxable amount of such compensation. On the other hand, nonemployees receive form 1099-MISC (miscellaneous income). Payments for nonwage or noncompensation amounts would always be reported on form 1099-MISC, even for employees. If interest is paid on an award, it should be reported on a separate form 1099-MISC. Similarly, the payment of attorneys’ fees related to taxable awards or settlements must be reported on form 1099-MISC to the injured party. Withholding for wage compensation is generally required, while backup withholding for other amounts paid may or may not be required, depending on the circumstances.

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