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My company filed for bankruptcy and went out of business. All employees got a small check from bankruptcy court. I received $89.94.will I receive a 1099 form and from whom. The attorneys, the court ?

Hi there! No, you will not receive a 1099 for your check. 1099s are typically only issued for payments over $600.

Additionally, the money you received as a payout from the bankruptcy is not taxable income for you. The only instance in which you might receive a 1099 is if there was a significant discharge of company debt, in which case the lender might send you a 1099-C. But again, this wouldn’t be taxable income since the debt relief was a result of bankruptcy.

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Sarah York, EA

Sarah is a staff writer at Keeper Tax and has her Enrolled Agent license with the IRS. Her work has been featured in Business Insider, Money Under 30, Best Life, GOBankingRates, and Shopify. She has nearly a decade of public accounting experience, and has worked with clients in a wide range of industries, including oil and gas, manufacturing, real estate, wholesale and retail, finance, and ecommerce. Sarah has extensive experience offering strategic tax planning at the state and federal level. During her time in industry, she handled tax returns for C Corps, S corps, partnerships, nonprofits, and sole proprietorships. Sarah is a member of the National Association of Enrolled Agents (NAEA) and maintains her continuing education requirements by completing over 30 hours of tax training every year. In her spare time, she is a devoted cat mom and enjoys hiking, baking, and overwatering her houseplants.

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