paywall free link:
Surprise Tax Form Is Latest Insult for Victims of East Palestine Train Derailment
I think a deduction for the amounts actually paid might be the easy approach.
OR ... tell the IRS in your own filing that the railroad fraudulently issued the 1099-MISC.
Unless you are awarded damages by the court for injury, it’s taxable.
This is probably a result of some form of settlement. To receive payment, they probably signed something saying they wouldn’t sue.
That puts the payment in the taxable category.
There is a detailed explanation somewhere in the 80 or 90,000 pages of the Internal Revenue Code; all you have to do is find it.
A better solution would have been to set up a GoFundMe account and have the railroad make the payments that way, because last I heard GoFundMe amounts are not taxable.
If I had it to do over, I would never take a cent from the government after a catastrophe!!! And I lost everything.
I got $25,000 emergency funds and now 3 years later they have decided it was a loan and want it back plus interest and penalties of another $9,000.
I about passed out when I opened the letter on Christmas Eve.
Bttt.
5.56mm
The student loan payoff money’s gotta come from somewhere...
As I’ve had to explain to folks who should have known better, a 1099 doesn’t determine tax liability. IRS regs require 1099s to be issued in set circumstances, and IRS regs determine whether or not there is tax liability.
A company doesn’t have discretion on whether or not to issue a 1099.
So from the perspective of the Biden administration, they chose poorly.
Just wondering.... The “Migrants” in New York are going to get preloaded debit cards, with a value up to 10,000. Will they be getting 1099-misc in the mail?
The individuals who waltz out of Walgreens with $900 of stuff, will they have to declare the value as income?
Oh, dear Lord . . .
It’s not like they were being compensated for some non-employee work performed or some other optional item. This was desperately needed money. They might as well have won new cars from Oprah.
I wonder if those illegal aliens will get 1099-MISC forms for their $10,000 debit cards. I think we all know the answer to that one.