A lawsuit settlement that does not include payment for back wages should be reported as other income.
Follow the steps below to report the IRS form 1099-NEC as other income.
- Select Federal from the left side menu.
- Click on Wages & Income.
- Scroll down to Less Common Income. Click the down arrow to the right.
- Click Start / Revisit to the right of Miscellaneous income….
- Click Start / Revisit to the right of Other reportable income.
- At the screen Other Taxable Income enter a description.
The entry will be reported:
- on line 8z of Schedule 1 of the Federal 1040 tax return, and
- on line 8 of the Federal 1040 tax return.
View the entries at Tax Tools / Print Center / Print, save or preview this year's return / Include government and TurboTax worksheets.
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