LenaH
Employee Tax Expert

Get your taxes done using TurboTax

You would enter your 1099-NEC and let it flow to Other Income and you would enter your 1099-MISC, which will also flow to Other Income. Then, you will also make a manual entry in Other Income to deduct the amount of your 1099-NEC form with the description - "Income reported on 1099-MISC". The net of all of these entries will be the amount of your 1099-MISC (the amount the lawyer sent you).

 

First - please follow the steps below to enter your 1099-NEC: 

  1. Open your return.
  2. Search for 1099-NEC with the magnifying glass tool at the top of the page.
  3. Click on the Jump to 1099-NEC link at the top of the search results. 
  4. Click Add a 1099-NEC.
  5. Enter the information as shown on your form. 
  6. On the page titled Guess what? You can deduct expenses for the example work choose No, I don't have expenses related to this income

Next - please follow the steps below to enter your 1099-MISC:

  1. Search for 1099-misc and select the Jump-to link.
  2. Edit your 1099-MISC.
  3. Continue past the amounts already entered.
  4. Describe the reason for this 1099-MISC.
  5. Answer This Money Was From a Lawsuit Settlement on the screen Does one of these uncommon situations apply?
  6. Answer No, it was not back wages for the next question.
  7. Answer No for the question Did you have another 1099-MISC?
  8. Your 1099-MISC will flow to Other Income.

Last - please follow the steps below to deduct the amount of your 1099-NEC:

  1. Click on Federal on the left hand side.
  2. Scroll down to Less Common Income.
  3. Click Start next to Miscellaneous Income.
  4. Click Start next to Other reportable income.
  5. Answer Yes to Any Other Taxable Income?
  6. List description as "Income reported on 1099-MISC"
  7. Enter the amount as a negative.

To confirm that only one amount is reflected on your tax return, please follow these steps to see your federal forms:

  1. Open your return.
  2. Click on Tax Tools on the left hand side.
  3. Click on Tools.
  4. Click on View Tax Summary.
  5. Click on Preview my 1040 on the left hand side.
  6. Search for Schedule 1 - Additional Income & Adjustments to Income.
  7. The amount in Other Income should be the amount of the 1099-MISC. 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post