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Returning Member
posted Mar 6, 2021 5:15:26 AM

I do not own a business, but received 1099 Misc from class action settlement. Do I need to fill out schedule C? How can I fill it out without owning any business?

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1 Replies
Expert Alumni
Mar 6, 2021 7:38:08 AM

Legal settlements that are taxable (including previously-deducted medical expenses related to physical injury or illness) are entered as miscellaneous (other) income.

If you received a 1099-MISC:

  1. Sign in to TurboTax and open or continue your return.
  2. Search for 1099-misc and select the Jump to link.
  3. If you're asked Did you get a 1099-MISC?, answer Yes.
    1. If you've already entered a 1099-MISC, select Add Another 1099-MISC.
  4. Input the information from your 1099-MISC and select Continue.
  5. On the Describe the reason for this 1099-MISC screen,
    type in lawsuit settlement and select Continue.
  6. On the Does one of these uncommon situations apply? screen, select This was money from a lawsuit settlement and then answer the back wages question before selecting Continue.