For well-know and/or well-publicized class action lawsuits, you may be able to find the actual judicial decree on the internet. In the past, have seen where some of these decrees specify what is taxable income and what is not.
The 1099-Misc does indicate taxable income.
Follow these steps to report the taxable income.
- Click on Federal.
- Click on Wages & Income.
- Under Your Income, click Edit/Add to the right Other Common Income.
- Under Form 1099-Misc, click Yes.
- Let’s get the info from your 1099-Misc, box 3 Other Income, click Continue.
- Describe the reason for this 1099-Misc, click Continue.
- Select This was money from a lawsuit settlement.
- Under Was any part of the lawsuit settlement for back wages?, select No.
This may also be helpful.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
