I don't have the option to have the law firm "do something else". GM sends them a 1099-MISC for the settlement and the firm essentially "forwards" it to me. There is no breakout of the fee and settlement proceeds because GM doesn't (want to) know. I did talk to the law firm and they essentially said that it is what it is and see a tax pro. They are just echoing what the online forums say, btw. 1099-MISC is for attorney fees which is what I paid.
Good point on the self employment tax. I don't know if a Sched C can happen without self employment. It's that or doing a misc income entry and leave the 1099-MISC dangling.
I'm still looking for a solution.
And I'm not using the online Turbotax.
