That is not really income it is a settlement. You can enter it as follows and not be subject to self-employment.
- Wages & Income
- Scroll to Other Common Income
- Select Income from a 1099-MISC
- Post your information from the form [Continue]
- Describe the reason for this 1099-MISC
- Post XXXX
- Does one of these uncommon situations apply?
- Select None of the above
- Did the XXXX involve work that's like your main job?
- No
- How often did you get income for XXXX?
- Check Got it in 2021
- Did the XXXX involve an intent to earn money?
- Answer No
If you do not follow this posting procedure it will result in self-employment. You would also have to pay 15.3% in self-employment tax (Social Security & Medicare).
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