If it is from a class action law suit, and you were not injured (no pain and suffering) the settlement is taxable. To enter as other income in TurboTax:
- Type "Other Income" in Search and hit Enter
- Click on "Jump to other income"
- Answer "No" to "Did you get a 1099-MISC"
- Continue through the interview till you get to "Less Common Income" and click on it.
- Scroll to the bottom of the page and click on "Start" next to "Miscellaneous Income, ..."
- Click on Start next to "Other reportable income"
- Answer Yes to "Any Other Taxable Income?"
- Give a description (e.g. Air bag settlement) and enter the amount
- The amount will be reported as "Other Income" on Schedule 1 of Form 1040
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