Withholding for a non-injury settlement check

July 16, 2020

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Q. I have a situation where a person will be receiving a settlement check for a non-injury related case. Do I have to withhold tax, similar to other 1099s? A. (Answered by a 3rd party, independent advisory services firm offering experienced and practical help for tax regulatory compliance for Forms W-9, W-8, W-2, 1099, 1098, 5498, 945, 1042, 1042-S, and state reporting.) Yes, the federal Backup Withholding regulations apply to settlement payments that are reportable in box 3 of Form 1099-MISC,…

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