The prior employer agreed to pay me a sum of money effectively to avoid my employment discrimination lawsuit. It was not "severance" or based upon lost compensation. For purposes of answering my question about reporting the receipt of this money on 1099-NEC, you can assume that I don't owe social security or medicare taxes on this money. It was a lump sum cash payment based upon a settlement agreement, plain and simple. My assumption is that I owe taxes on this money as ordinary income, so again my question is whether I need to report it in a particular way for TurboTax to accept the information. Thanks.
