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I have a tax question for my federal taxes. over the year, I

received funds for a lawsuit...
I have a tax question for my federal taxes. over the year, I received funds for a lawsuit settlement for housing discrimination. I am on private disability for an illness, and they will subtract any additional funds I earn, from my monthly stipend. Can I pay down this settlement from funds I used for housing improvements the same year, or deduct these funds, or any other way making these funds less taxable.
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Customer reply replied 1 month ago
The income from the settlement is reported on a 1099 MISC as non employee compensation.
Customer reply replied 1 month ago
Is it possible to put these funds in a trust, or giving it to a family member, if my parents are no longer alive.
Customer reply replied 1 month ago
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call.
Customer reply replied 1 month ago
Let me know if you need more information, or send me the service offer(s) so we can proceed.
Answered in 49 minutes by:
10/16/2017
Amanda Russell
Category: Tax
Satisfied Customers: 11
Experience: Accounting & Tax Educator at Self-Employed/Ut Du LLC
Verified

Aloha - Amanda here. I'm a financial and tax expert, with an EA (can file all forms and represent all types of business taxpayers before the IRS). I have a master's in accounting, MBA and big four public accounting background in taxation. I've also been a tax expert for Intuit for many years.

....

Just from what you stated, I would think the settlement would be taxed as 'other income' box 3. 1099MISC box 7 is always taxed as self-employed income, but you said earned - do you do any work to receive the settlement income? Have you gotten it in past years - always reported on this form? Is the settlement ultimately to replace work wages, albeit housing discrimination?

...

I can offer you premium services but I would need to call you tomorrow,I'm flexible on the time.

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Customer reply replied 1 month ago
The settlement is from a lawsuit, not earned income, the question comes as how can I spend down this amount or take it off via deductions, place it in a trust or make it less taxable?
Customer reply replied 1 month ago
call at 11 AM EST please? or between 11 AM and 12 PM?

Yes, I can do that. You may have gotten another expert - let me know if you still need it resolved.

Amanda Russell
Category: Tax
Satisfied Customers: 11
Experience: Accounting & Tax Educator at Self-Employed/Ut Du LLC
Verified
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Hi - apologies, I hadn't realized you had accepted the offer since I though you took another call. I'm not sure how I can call you. I'm messaging the moderator.

The last call I did came up with a button and then the software called you, so I'm figuring out how to make that happen!

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Amanda Russell
Amanda Russell
Amanda Russell
Category: Tax
Satisfied Customers: 11
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Experience: Accounting & Tax Educator at Self-Employed/Ut Du LLC

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