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Updated almost 4 years ago, 03/25/2021

User Stats

32
Posts
16
Votes
Robert H.
  • Investor
  • Oahu, HI
16
Votes |
32
Posts

Re-compensated legal fees classified as interest income on 1099?

Robert H.
  • Investor
  • Oahu, HI
Posted

I realize this question is best answered by a tax professional but since it's the busy season, so far I can't find anyone (including calling the IRS and turbo tax live) and was hoping someone can give a simple answer on this before I spend more time and money on it.

  A servicer has included re-compensated legal fees as interest income on my 1099-int so I am paying interest income tax on legal fees.   Is this accurate?   

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