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Question
I received 1099 for settlement on lemon law lawsuit. what can I write off or deduct?
Answer
Generally, a lemon law settlement is only taxable for the part that exceeds your loss. Your settlement agreement might discuss if the settlement exceeds your loss.

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Melissa Pedigo

Melissa Pedigo has been a CPA for over 20 years and she is one of the only CPA copywriters in the world. With a vast knowledge of U.S. tax and accounting, she’s able to write about tax and finance topics from a unique perspective...as an industry expert. When she’s not writing or being an accounting nerd, you’ll find her watching and playing tennis, reading, tending to her half-grown garden, and studying foreign languages

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