@ekotop522 , from the instructions mentioned above, instead of income and expenses, please look for Wages & Income.
Please follow the steps below:
- Click on Tax Home from the Left Side Menu.
- There will be an option for Wages & Income on the main screen.
- Then scroll down till you see the section titled "Less Common Income". Within this section, there will be an option for Miscellaneous Income, 1099-A, 1099-C. Click on Start next to it.
- Then there will be an option for Other Reportable Income. Click on Start next to it.
- You will be asked for a description and amount, enter the lawsuit amount as a negative number to offset the gain. ( Enter the negative amount and all these steps, once you have completed the Form 1099-MISC as mentioned in the steps earlier).
