Self employed
You shouldn't need to enter a business code if the lawsuit is entered as other income on the federal return. TurboTax transfers data from your federal return to your state return. Before you begin troubleshooting your state return, go back through your federal return and make sure everything is correct.
After you review your federal return, select the State Taxes tab and review the state section. Pay close attention to the information, especially if you have made changes to your federal return. There might be new sections that need to be completed.
To enter the settlement:
- Go to Wages & Income
- Scroll to the bottom under Less Common Income, select Start (or Update) for Miscellaneous Income.
- Choose Other reportable income
- Answer Yes to Any Other Taxable Income
- On the next screen enter the description and amount
Your settlement will now get reported as Other Income on your tax return. Feel free to reach back if you have any other questions.
Troubleshooting common federal to state transfer issues
If you continue to have issues, please let us know and give us more details on what state you are having issues with.
