You would enter under the 1099-MISC section. Here are the steps (online):
- Sign in to your account, select Pick up where you left off
- At the right upper corner, in the search box, type in 1099misc and Enter
- Select Jump to 1099-misc
- Enter information on the 1099-misc screen
- Next screen, Describe the reason for this 1099-MISC, enter Lawsuit settlement
- Next screen, Does one of these uncommon situations apply? Check This was money from a lawsuit settlement, answer questions related to the back wages
When you check your return, this amount will be reported as wages on line 1 on the Form1040 and an offset amount shown on line 22 from 1099-misc on Schedule 1.
[Edited 4/5/2020 | 6:25 PM]
