Get your taxes done using TurboTax

Yes.  TurboTax has a place to enter your car accident settlement payment (taxable portion). If the Form 1099 is received then use the first set of entry direction, if not use the second. It may come with only the taxable portion shown on the form so be sure to compare it to your records or email.

If you received a 1099-MISC:

1. Sign in to TurboTax and open or continue your return.
2. Search for 1099-misc and select the Jump to link.
3. If you're asked Did you get a 1099-MISC?, answer Yes.
   1. If you've already entered a 1099-MISC, select Add Another 1099-MISC.
4. Input the information from your 1099-MISC and select Continue.
5. On the Describe the reason for this 1099-MISC screen,
   type in lawsuit settlement and select Continue.
6. On the Does one of these uncommon situations apply? screen, select This was money from a lawsuit settlement and then answer the back wages question before selecting Continue.

If you didn’t receive a 1099-MISC, follow these steps to report the income:

1. Sign in to TurboTax and open or continue your return.
2. Search for lawsuit settlement and select the Jump to link.
3. Answer Yes to the question Any Other Taxable Income?
   1. If you've already entered miscellaneous income, select Add Another Miscellaneous Income Item.
4. Enter a brief description and the amount you received and click Continue.

Interest earned on settlements is taxable income and should be entered as a Form 1099-INT.