Tracy Lee Posted February 17, 2022 Report Share Posted February 17, 2022 TP has received her first installment from the 'Paradise Fire' Federal Disaster in 2018. It came from the attorney representing the fire victims. Her portion is a fully Emotional Distress Claim. She lost no property, nor was physically injured in any way. She also has not received any other compensation or insurance payments. From my research this will be fully taxable, even the portion that the attorney retained for services. I called the attorney's office and they will not be issuing a 1099, so I should put this as 'other income' on the 1040? Has anyone else dealt with this issue and can you validate my research that it is fully taxable income? California Disasters.pdf Quote Link to comment Share on other sites More sharing options...
JRS Posted February 17, 2022 Report Share Posted February 17, 2022 Possible California relief if AB1249 is passed. Check this website: https://calfiretaxinfo.org/2022/02/15/will-the-pge-settlement-be-tax-free-to-california/ Quote Link to comment Share on other sites More sharing options...
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