Retirement tax questions

To enter a Form 1099-NEC from a Lawsuit Settlement:

Open your return and go to Federal >> Wages & Income >> Other Common Income >> Income from Form 1099-NEC. Click Start/Update.

Or enter 1099-nec in the Search box located in the upper right of the program screen.  Click on Jump to 1099-nec.

1. On the screen Did you get a 1099-NEC?, click on Yes.
2. On the screen Do You Want to Enter Your 1099-NECs Now?, click on Add a 1099-NEC.
3. On the screen Let's get the info from your 1099-NEC, enter your information and click Continue.
4. On the screen Describe the reason for this 1099-NEC, enter a reason and click Continue.
5. 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 enter the amount of back wages (if applicable).

Only the wage portion from Form 1099-NEC will be reported as Other Income on Form 1040 Line 8z.

Additional Information:

• Are legal settlements taxable?
• Where do I enter an award from a taxable legal settlement?