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Old 04-13-2015, 06:43 PM
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Lawsuit award taxable?

I received two checks on 12/26/14 for $1000.00 each that came as a result of an FDCPA violation. I have gotten nothing as far as any kind of 1099-the lawyer's office that my debt resolution company hired for the suit has told me they can't give me any tax advice when I asked them if it was taxable income since I have never gotten an award from a lawsuit and I didn't know. If I have to report it, how, and as what kind of income?



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Old 04-14-2015, 01:35 AM
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I think so ; Damages for nonphysical injuries are taxable to you a recipient.Therefore the awards from your FDCPA lawsuits are taxable and must be reported in the year awarded, not actually received.as it is taxable as ordinary income. Include it on line 21 of Form 1040.



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