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When you receive a 1099 for a settlement from a lemon law lawsuit, the tax implications can vary depending on the specifics of the settlement. Generally, if the settlement is compensating you for actual financial loss, like repairs or loss in value of the vehicle, it's usually not taxable and therefore wouldn't need to be written off.

However, if any part of the settlement is for interest, punitive damages, or emotional distress, those portions are typically considered taxable income. Unfortunately, you can't write off or deduct these amounts on your taxes.

Remember, it's important to review the details of your settlement and consult with a tax professional to understand the full tax implications.