1099 misc

[lbarthell]

My client have a 1099 -misc.form 10,500.00 in box 3. received this from a Lawsuit settlement for emotion distress and job lost from
Katrine damage in New Orleans. the net of the check $6153.00.

I add the 10,500.00 to other income line 21 sch. 1040. question

can I deduct the Lawyer fee of $4,347 on line 23? Sch. A

[ATSMAN]

My client have a 1099 -misc.form 10,500.00 in box 3. received this from a Lawsuit settlement for emotion distress and job lost from
Katrine damage in New Orleans. the net of the check $6153.00.

I add the 10,500.00 to other income line 21 sch. 1040. question

can I deduct the Lawyer fee of $4,347 on line 23? Sch. A

I think emotional distress is considered personal injury so it may be non taxable. If it is non taxable then there is no deduction for attorney fees.

[FEDUKE404]

More than emotional stress payment ?

Things could get a bit tricky if there was some consideration / payment of "lost wages" included in the settlement reported on the Form 1099-MISC.

FE