[CFW]

The government can always be counted upon to kick someone when they are down.

paywall free link:

Surprise Tax Form Is Latest Insult for Victims of East Palestine Train Derailment

[Honest Nigerian]

I think a deduction for the amounts actually paid might be the easy approach.
OR ... tell the IRS in your own filing that the railroad fraudulently issued the 1099-MISC.

[fruser1]

Unless you are awarded damages by the court for injury, it’s taxable.

This is probably a result of some form of settlement. To receive payment, they probably signed something saying they wouldn’t sue.

That puts the payment in the taxable category.

[Bernard]

This is not the railroad's fault (just about the payment and the tax treatment, not the cause of the payment). !!

There is a detailed explanation somewhere in the 80 or 90,000 pages of the Internal Revenue Code; all you have to do is find it.

A better solution would have been to set up a GoFundMe account and have the railroad make the payments that way, because last I heard GoFundMe amounts are not taxable.

[AuntB]

If I had it to do over, I would never take a cent from the government after a catastrophe!!! And I lost everything.

I got $25,000 emergency funds and now 3 years later they have decided it was a loan and want it back plus interest and penalties of another $9,000.

I about passed out when I opened the letter on Christmas Eve.

[M Kehoe]

Bttt.

5.56mm

[Christopher]

The student loan payoff money’s gotta come from somewhere...

[PAR35]

As I’ve had to explain to folks who should have known better, a 1099 doesn’t determine tax liability. IRS regs require 1099s to be issued in set circumstances, and IRS regs determine whether or not there is tax liability.

A company doesn’t have discretion on whether or not to issue a 1099.

[Verginius Rufus]

The county East Palestine is in voted for Trump almost 3-1 both in 2016 and 2020.

So from the perspective of the Biden administration, they chose poorly.

[I want the USA back]

Just wondering.... The “Migrants” in New York are going to get preloaded debit cards, with a value up to 10,000. Will they be getting 1099-misc in the mail?

The individuals who waltz out of Walgreens with $900 of stuff, will they have to declare the value as income?

[Tolerance Sucks Rocks]

Oh, dear Lord . . .

It’s not like they were being compensated for some non-employee work performed or some other optional item. This was desperately needed money. They might as well have won new cars from Oprah.

I wonder if those illegal aliens will get 1099-MISC forms for their $10,000 debit cards. I think we all know the answer to that one.