@DLS59 wrote:
I thought it was an error. Should I just fill out TurboTax and put the amount in Box 3? Or should I request a new 1099-MISC from the insurance company?
It will be better to get a corrected 1099 if they will issue one.
Also note, the proceeds may be non-taxable, partly taxable or fully taxable, depending on what you are being compensated for. The part of the settlement for physical injury is not taxable. Any part of the settlement for property damage is non-taxable unless the payment is more than your original cost for the damaged items, in which case the excess is taxable. Damages for lost income, punitive damages, and interest, are taxable.
If you enter the 1099-MISC as taxable income, but it is not fully taxable, you will have to make an adjustment in the program. One of the turbotax employees can explain that procedure better than I can. The adjustment could be made from the current 1099, but it would be better to have a corrected 1099 to work with.
