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1099-MISC from insurance company for an injury lawsuit settlement
I received a settlement from an insurance company for injury from a car accident. They sent me a 1099-MISC, with the amount of the settlement in box 10, "Gross proceeds paid to an attorney." The payment was made to me, and my research suggests money awarded in a lawsuit settlement should be shown in Box 3, "Other Income." Because it was shown in Box 10, TurboTax is trying to populate a Schedule C, but I am not self-employed or a business. Can you help me understand why this may not have been not reported in Box 3? Also, everything I have been able to read says lawsuit awards due to injury are not taxable. Can you confirm this?
‎February 13, 2023
4:13 PM