Report this income as "Other Reportable income" - the IRS just wants you to report it, and it does not need special handling or interviews like rental property would. Also, it won't make any difference in your tax calculation if it goes in as "Other income" (line 8 of Schedule 1 and Form 1040).
-
Go to Less Common Income, Miscellaneous Income and Other reportable income. Enter "Lawsuit settlement" in the Search Box and Select "Jump to lawsuit settlement" "to get to this screen ("Lawsuit settlement" is just an effective search term to get to this interview screen)
-
Continue to the screen "Other Taxable Income". Enter the description as "Hay sale" and the amount ($300). " These are NOT wages.
The income will be entered on line 8 of Schedule 1 and Form 1040.
