I received a 1099-Misc for a lawsuit settlement payment that is partially taxable (emotional distress) and partially not taxable (real property reimbursement). How do I enter this 1099-Misc on Turbo Tax?
I have tentatively entered the taxable amount in Box 3 but it's around half of the amount shown on the actual 1099-Misc generated by the law firm, so can I simply include a letter explaining my settlement and how the taxable portion is calculated? Will that work? The law firm will not issue two separate 1099s.
