I received payments from my insurance company for lost wages due to a temporary total disability caused by an accident. These payments were deposited directly into my bank account and are not related to any business, self-employment, or professional activity.
Despite this, the software is forcing me to report the income under Schedule C, requiring me to provide a business name, code, and accounting method. However, this is not a business, and these payments are simply a replacement for wages lost during my recovery period.
I need help understanding why the software directs me to Schedule C instead of allowing me to report this as "Other Income" or another appropriate category. Please clarify how to correctly categorize this type of income.
