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Get your taxes done using TurboTax
The income is taxable but is not compensation for services performed, so it should be reported as "other income" rather than self-employment income. Try entering the 1099-NEC and then check the box for "this is occasional or hobby income". That will put it on line 8z as "other income."
https://www.irs.gov/government-entities/tax-implications-of-settlements-and-judgments
‎February 4, 2024
12:21 PM