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Settlement money is usually always taxable unless it's the result of, or related to, a physical injury. It will not be reported as "earned income," however, meaning it won't be subject to self-employment taxes. It will probably be reported on a 1099-MISC rather than a 1099-NEC (which are for independent contractors).
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Settlement money is usually always taxable unless it's the result of, or related to, a physical injury. It will not be reported as "earned income," however, meaning it won't be subject to self-employment taxes. It will probably be reported on a 1099-MISC rather than a 1099-NEC (which are for independent contractors).
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