Can I report non-taxable attorney fees without having to file a schedule C?

[rich_joseph]

I received a 1099-Misc with entries in box 7 and in box 14 as a result of a lawsuit settlement.  Box 7 represents taxable non-wage portion of my settlement.  Box 14 represents non-taxable (to me) fees paid by defendant to my attorney.  This settlement was for discrimination suit, so attorney fees are not taxable to me.  If I fill in any amount for line 14 in TT and answer appropriate questions, it is making me create a schedule C.  I am not self-employed.  Should I simply create a 1099-misc and NOT fill in box 14?  HELP!?

[DanO · Accepted solution]

You can enter the settlement amount without using the Schedule C Self-Employment.

• Sign into TurboTax
• Click on Take me to my return
• Click on Federal in the left column
• Scroll down to Less Common Income and click Show more
• Click on Miscellaneous Income, 1099-A, 1099-C and click Start
• Click on Other reportable income
  
• Click Yes on Any Other Taxable Income
• Enter Description and amount
• The amount will show on line 21 of 1040, Other income