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.
- On the screen Did you get a 1099-NEC?, click on Yes.
- On the screen Do You Want to Enter Your 1099-NECs Now?, click on Add a 1099-NEC.
- On the screen Let's get the info from your 1099-NEC, enter your information and click Continue.
- On the screen Describe the reason for this 1099-NEC, enter a reason and click Continue.
- 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.
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