Hi,
I filed a claim with the state Department of Transportation for damage to my vehicle due to state's negligence in removing snow and ice from the roadway in winter of 2025. They honored the claim for the full $700 after I signed the release. I just received a 1099-MISC for this $700 even though it was purely for body damage to my car based on the repair shop estimate. My understanding is property damage reimbursement of this kind is non taxable. When I pop the 1099-MISC into Turbotax of course it treats it as taxable. What to do? Thanks in advance!
