@billick --
Yes, you should enter the 1099-MISC into the appropriate section of TurboTax. Settlements reported in Box 3 of a 1099-MISC are generally taxable. Per the IRS:
Generally, all punitive damages (even if they relate to physical injury or physical sickness), any damages for non-physical injuries or sickness, liquidated damages received under the Age Discrimination in Employment Act of 1967, and any other taxable damages are required to be reported in Box 3.
See Page 26, https://www.irs.gov/pub/irs-utl/lawsuitesawardssettlements.pdf
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
