What are you supposed to do when a taxpayer has received a Court-approved Health Net class action settlement in 2016? The taxpayer did receive about $50.00 because of this settlement. According to the letter, none of the distribution was already taxed. Is this money likely taxable and should it be shown on Line 21 - Other Income on Form 1040, or am I incorrect?
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If the money was used to increase a refund (sch a or sch c)deduction, then I would.Originally posted by Tax Sleuth View Post
If it was not, then its just a refund of fees paid for something.
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Was a 1099misc issued? You need to look at the documents.Believe nothing you have not personally researched and verified.Comment
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To my knowledge, there was no Form 1099-MISC. The letter does not state anything about that. It sounds like it is safer to include the money as Other Income even if it does not have to be there.Comment
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if no 1099misc, is it possible the company would have determined that it was not taxable. just guessing.Comment
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