Have a follow up question regarding 1099-MISC received from Ponzi scheme loss recovery.
Received this because it was required by law for tort claim settlement. However, the recovery is non taxable (still recovering the non-deducted portion (25%) from prior year (2017) Ponzi scheme safe-harbor deduction)
I worry not including this 1099-MISC into Turbotax can trigger an audit since IRS received this 1099-MISC. However, there is no way to mark it non-taxable after entering into turbotax. Interview questions after 1099-MISC offers no option.
Is there anyway to do this? Or just not include it in the tax return? Will be saving records clearly indicating Ponzi scheme loss, safa harbor deduction, non taxable and taxable recoveries.
