Hi Everyone:
I am trying to find out how to record a payment I received from a lawsuit. I will use an example below for my question:
I received $22,000 from an accident
the attorney took their cut
I had bills from the attorney for time and copy service etc...
and they paid my medical I received the balance lets say $5,000
How do I enter this? Is it considered income or a liability? Do I record the expenses?
I itemize for my taxes so I want to make sure I get this correct.
Thanks