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1099 Reporting Rules for Legal and Medical Settlement Payments
July 23, 2025
Q. We are reimbursing a claimant for medical payments based on a settlement agreement. The settlement agreement provides payment for only the reimbursement of medical fees and the claimant's attorney fees, which we are cutting a separate check for and sending directly to the attorney. My understanding is that reimbursement for medical expenses is not 1099 reportable. If this is the case, would the attorney fees also not be reportable?
A.
(Answered by IOFM's third-party tax expert)
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