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Large legal settlement


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Client has been awarded a very large settlement for death of spouse in vehicle accident.  Of course I get a call asking if it's going to be taxable.  My response was it depends on how the settlement is worded, as to what payments were for.

I've never had this before and curious as to what paperwork client will receive.  Anything in addition to copy of court settlement?  Tax forms?  Statement from atty as to parts that are/may be taxable?

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"The party that pays a taxable settlement or judgment to the injured party and/or their attorney will issue a Form 1099-MISC, Form 1099-NEC, or W-2 to report the settlement. In some cases, the claimant and attorney are issued separate 1099s reporting the same settlement dollars.Jun 15, 2023"


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