i would delete the 1099-MISC because you can't describe what it is - it merely shows as an amount from 1099
in forms mode click on the forms tab at the top
then open form
then enter in the search box - other income
on line 22 in the Turbotax form enter - lawsuit settlement per 1099 and amount
right below that enter - nontaxable amount included and amount
this will allow you to e-file.
with a letter you would have to mail the return - it will be months before you know if you succeeded because there is no way to know what the clerk entering your return will do with the letter. if you do mail it, be sure to follow Turbotax filing instructions and I highly recommend mailing using a method where you can either track it or get proof of delivery.
even if you use my method so you can e-file, the IRS might still send you a letter/notice requesting additional info.
