catax Posted February 26, 2009 Report Share Posted February 26, 2009 I have two clients that received a settlement for commisions that were calculated inncorrectly from last employer. They received 1/2 settlement as W2 and 1/2 on 1099. The 1099 lists the amount that they received in a check as other income, but there is another figure listed in box 14 attorney fees. In ATX it allows and entry for box 14 and then has another field for taxable amount. None of the clients documentation states that they received a larger award and paid attorney fees out of that award. It was a class action suit. The question is can this box 14 amount be taxable to the receiver of the settlement. All my research shows this box relating to the attorney claiming their own income. Any thoughts on this? Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 27, 2009 Report Share Posted February 27, 2009 I'm guessing that the person who filed that out did not know what they were doing, and just meant that box to be informational to the client, as to how much was paid to the attorney, which amount may be deductible. Quote Link to comment Share on other sites More sharing options...
catax Posted February 27, 2009 Author Report Share Posted February 27, 2009 This was my thought as a possility but I wanted to make sure nothing changed I wasn't aware of. I appreciate the 2nd opinion. Quote Link to comment Share on other sites More sharing options...
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