Does 1099 medical have to be reported

A non-work (not self-employment) 1099-MISC would be for things like:

• Prize money
• Lawsuit settlements
• Research studies
• Other

If your 1099-MISC has an amount in Box 3, enter it as follows:

1. Sign in to TurboTax and Continue. Select the Wages & Income tab.
2. Search for 1099-misc.
3. Select the Jump to 1099-misc link in the search results.
4. Select Yes to Did you get a 1099-MISC? If you land on the 1099-MISC Summary screen, edit the 1099-MISC in question.
5. If you need to enter another 1099-MISC, select Add Another 1099-MISC to enter a new one.
6. Enter the information from your 1099-MISC.
7. If your form has an amount in more than one box, you’ll need to enter them as separate 1099-MISC forms. We’ll help you with that.
8. On the Describe the reason for this 1099-MISC screen, enter a reason then Continue.
9. On the Does one of these uncommon situations apply? screen, select None of these apply then Continue.
10. On the Did the XXX involve work that’s like your main job? screen, select No, it didn’t involve work like my main job then Continue.
11. On the How often did you get income from XXX? screen, select I got it in 2020 then Continue.
12. On the Did the XXX involve an intent to earn money? screen, select No, it didn’t involve an intent to earn money then Continue with the onscreen interview until complete.

Tax settlements may be taxable but it depends upon the type of settlement. The settlement type will be listed in your Final Settlement Agreement. For additional information see Are legal settlements taxable?

A legal settlement for personal injury is not taxable.  However, if the settlement reimburses you for medical expenses that you previously paid with tax-free insurance, that part of the settlement might be taxable.  If the settlement contains punitive damages or interest, that part is also taxable.

We really need more information to give a clear answer and tell you how to best report it.