It depends on what the settlement is paying for, lost wages or physical injury. It might even be a combination of both.
You could ask the lawyer for clarification if you are unsure. The IRS link below will also help you determine what portion, if any is taxable.
You my also enter the form into the TurboTax program and answer the interview questions that follow. The program should know how to report it.
Please click here for IRS information about settlements
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
