Thank you for the clarification.
See this IRS article:
If you're not an employee of the payer, and you're not in a self-employed trade or business, you should report the income on line 8j of Schedule 1 (Form 1040), Additional Income and Adjustments to IncomePDF and any allowable expenses on Schedule A (Form 1040), Itemized Deductions. Refer to Not for Profit Activities in Chapter 1 of Publication 535, Business Expenses for allowable nonbusiness expenses.
In TurboTax Online, in order to report income so that it appears on line 8 of Schedule 1:
- Go to Wages & Income
- go to Less Common Income
- Select Miscellaneous Income
- Select Other Reportable Income - this is where punitive damages from lawsuit settlements and other reportable income is entered.
The IRS may send you a notice regarding a missing information return if the amount isn't entered as a Form 1099-NEC. The disposition would depend on the individual facts and circumstances.
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