DianeW
Expert Alumni

Get your taxes done using TurboTax

It's important not to alter the W2 in any way when you enter it for filing.  The IRS will be looking for the exact figures when they match the W2 documents with your tax return.

Even if you did try to add the $80 in another section of the tax return, the IRS will try to match the Form 1099-MISC with your return.  When it's not listed in the correct location of the return, so that it is identifiable, they will assume it has been omitted which will initiate correspondence at some future point.

For these reasons, the lawsuit settlement is required to be reported on line 21 of the Form 1040. This is the only location available for the entry.  The 1040EZ and the 1040A are not equipped for these types of income.  The Form 1040 covers every area of income, deduction, and credit available. The TurboTax Free version will require an upgrade for this type of income and carry all of your data. instructions for adding this to your return are included below.

https://ttlc.intuit.com/replies/3302162

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