What Box Should Attorney Fees Go 1099?
The IRS already knows that the amount in Box 14 isn’t ALL going to be income to the attorney. If you read the instructions for reporting amounts in Box 14, you will see that sometimes amounts even get reported twice, once in full to the attorney, and once in full to the claimant.
Why do I not have to report all of my attorney’s income?
Another reason to NOT report “all the gross as the attorney’s income and then deduct the client settlement portion”, is pertaining to taxes that are assessed based on revenue. Texas has the franchise tax which is this way. The IRS already knows that the amount in Box 14 isn’t ALL going to be income to the attorney.
