Get your taxes done using TurboTax

It’s reportable as income, but generally not subject to self-employment tax rules.

With TurboTax Online open, 

1. Click the Pick up where you left off button, if it’s present.
2. Let the whole page load.
3. Click the Search box at the top of the screen.
4. Type form 1099-misc in the search box.
5. Click Jump to form 1099-misc.
6. Click Edit or Add.
7. On the Let's get the info from your 1099-MISC page, enter your information.  The settlement is probably in box 3 of the form.
8. On the Describe the reason for this 1099-MISC page, enter Lawsuit Settlement.
9. On the Does one of these uncommon situations apply? page, click the button next to This was money from a lawsuit settlement, and answer Yes or No to Was any part of the lawsuit settlement for back wages?.