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baltknecht
New Member

I know the civil portion of my lemon law settlement is taxable but where do I enter the amount I received?

 
1 Reply
GeoffreyG
New Member

I know the civil portion of my lemon law settlement is taxable but where do I enter the amount I received?

We actually have a frequently asked questions (FAQ) webpage in TurboTax that will describe those mechanical data entry steps necessary for entering a taxable legal settlement or award into the program.  Here is the link:

https://ttlc.intuit.com/questions/1901380-where-do-i-enter-an-award-from-a-taxable-legal-settlement


When done correctly and those steps followed, the taxable legal settlement will appear on your Form 1040, Line 21, as (other) income subject to ordinary income taxes.

You may additionally find the information at the following TurboTax webpage informative as well:

https://ttlc.intuit.com/questions/2899059-are-legal-settlements-taxable


Thank you for asking this important question.



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