Can you clarify; did you actually receive income from a legal settlement?
If so, here's how you report the income, on your tax return:
If you didn’t receive a 1099-MISC:
- Sign in to TurboTax and open or continue your return.
- Search for lawsuit settlement and select the Jump to link.
- Answer Yes to the question Any Other Taxable Income?
- If you've already entered miscellaneous income, select Add Another Miscellaneous Income Item.
- Enter a brief description and the amount you received and select Continue.
You can subtract attorney's fees as you mentioned earlier.
Here's more info on Legal Settlements.
@TB122
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