I received a 1099 for $425 as part of a class action settlement/ under the reportable $600 to the IRS. Since was a class action including 100s of plaintiffs, do I still need to report this 1099 as specified in the settlement agreement court document?

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AI accountant’s answer:

Absolutely, you should report this income. Even though the amount is under the $600 threshold for third-party settlement organizations to report to the IRS, it's still taxable income to you. You should include it on your tax return, likely as "Other Income" on Schedule 1 of your Form 1040. The IRS requires you to report all income, not just amounts that are reported to them by others. So, even if you didn't receive a 1099, you'd still need to report this income.

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