You would enter the amount of income reported on an IRS form 1099-MISC. Then you would make the entry for qualified attorney's fees above the line deduction under Less Common Income as outlined by @JohnB5677.
If you received an IRS form 1099-MISC for a lawsuit settlement with income in box 3, the income is likely taxable as other income.
- In TurboTax Online, in the search magnifying glass in the upper right hand corner of the screen, search for 1099-misc and select the Jump to link
- If you're asked Did you get a 1099-MISC?, answer Yes
- If you've already entered a 1099-MISC, select Add Another 1099-MISC
- Enter the information from your 1099-MISC and select Continue
- On the Describe the reason for this 1099-MISC screen,
enter lawsuit settlement and select Continue
- On the Does one of these uncommon situations apply? screen, select This was money from a lawsuit settlement and then answer the back wages question before selecting Continue.
You may view the entries at Tax Tools / Tools / View Tax Summary / Preview my 1040 or at Tax Tools / Print Center / Print, save or preview this year's return / Include government and TurboTax worksheets after you have paid for the software.
@MandyJean
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