Here is the best method to report this so that only the amount of the lawsuit is taxable but you won't be assessed self-employment taxes.
- Log into your account
- Select Wages and income>other income
- Miscellaneous Income, 1099-A, 1099>start
- Scroll to the bottom of the page to Other Reportable Income
- Other taxable income, answer yes
- Then give a brief description of the income and the amount listed.
- Here say 1099-MISC-lawsuit Settlement and th4 amount.
@JimLieb
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