Delete the 1099-C entry and enter your 1099-NEC following these steps:
- Federal
- Income and Expenses
- Income from Form 1099-NEC
- Fill in the information - including the reason for the 1099-NEC as lawsuit settlement
- On the screen: Does one of these uncommon situations apply?
- Select This was money from a lawsuit settlement
- Answer the question about back wages and amount from back wages if any
- Continue
Are Legal Settlements Taxable
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