Based only on my experience with the settlement monies I discussed in the preceding chain of emails, it seems to me that the 1099-NEC is certainly the wrong form since, as others previously commented, the IRS designed this form for reporting certain work-related earnings, not other types of income. The 1099-MISC is the better form for settlement monies, and most payments in settlement of litigation are taxed as ordinary income, so it isn't surprising that you would see a tax computation appear in turbotax. What does not make sense to me is the reimbursement aspect of this settlement. If the hotel settled by agreeing to reimburse you for a calculated overpayment, then the money isn't income to you and there may be a different way to report it. Unfortunately I don't have the experience or expertise to explore that possibility -- I hope others will weigh in. Good luck.
