Jhon, a criminal in jail and senteced for life, received $1,500,000 from a winning lawsuit (before he was incarcerated). Only $1,050,000 was actually deposited into his account because the law firm claimed its 30% contingent fee right off the top. He had access to the remaining funds, but all of his needs were covered by State prison. So, he did not withdraw any of the funds that were held in account for him.

In addition, John was sued by different people seeking restitution for the crime he commited. These lawsuits were settled late in 2019 resulted in the balance of John's civil suit damages paid out as follows: $200,000 to Johns criminal attorney for services provided during his felony trial; $675,000 to the family of the victim of his crime [$250,000 of compensatory damages and $425,000 of punitive damages]; and $175,000 paid to the State Department of Corrections to cover a portion of the cost of incarcerating Frank for the rest of his life.

Question

1. How much gross income does John realize this year, if any, when the $1,500,000 was paid to the law firm on his behalf?

2. How much may John deduct in 2019?