The income should not be self-employment income. To report taxable legal settlements in TurboTax Online, follow these steps.
- Down the far left side, click Federal.
- Across the top, click Wages and income.
- Under Your income, find Other Common Income. Click Show more.
- Under Form 1099-Misc, click Start/Revisit.
- At the page 1099-Misc Summary, click on Add another 1099-Misc.
- Complete the information requested.
- At the page Describe the reason for this 1099-Misc, explain the reason.
- At the page Does one of these uncommon situations apply?, click on This was money from a lawsuit settlement.
- Answer Was any part of the lawsuit settlement for back wages?
- The income will be reported on 1040 Schedule 1 Part 1 line 8 Other income.
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