Here is another way to enter this. It does not look accurate because it is not lawsuit, but it will put the correct information on your return and not try to make it a business.
Go to Wages and Income
Then Less Common Income
Pick the lawsuit option and answer the questions
This will report the income, put it in the correct place on your forms and not require you to report as a business. TurboTax used to have an option to report a grant but it does not seem to be there this year. If someone finds a better way, please post that. The IRS will not see anything about a lawsuit. This is just a workaround to report correctly.
