topic Class Action Settlement in Get your taxes done using TurboTax

Class Action Settlement

datajana — Mon, 09 Mar 2026 06:18:16 GMT

I received a class action settlement check for a little over $8.00.

Do I need to report it?

Re: Class Action Settlement

datajana — Tue, 08 Feb 2022 22:33:25 GMT

Meant to add, I’m filing as self-employed and have made less than $600 this year. Just wondering if this applicable.

Re: Class Action Settlement

LeonardS — Tue, 08 Feb 2022 23:07:35 GMT

The IRS requires that all income be reported. You will need to report the settlement check as other income.

To enter your class action settlement check in TurboTax follow these steps:

Sign in to your TurboTax account
Click the Income & expenses tab
Scroll down to other less common income
On the Line Miscellaneous Income, 1099-A, 1099-C click Start
On the page Let's Work on Any Miscellaneous Income scroll down to Other reportable income Click Start
On the page Any Other Taxable Income? Check yes
Follow the screen prompts to enter your class action settlement check.

Also, you will be required to file Schedule C if your income after expenses is greater than $400. To enter your self-employment in TurboTax follow these steps:

Open or continue your return
Search for schedule c and click the Jump to link in the search results
Answer Yes to Did you have any self-employment income or expenses?
- If you've already entered self-employment work and need to enter more, select Add another line of work
Follow the onscreen instructions to enter your information.

Re: Class Action Settlement

Mike9241 — Wed, 09 Feb 2022 01:22:44 GMT

class action lawsuits are generally designed to deal with situations where the injury is material (i.e., a defective product or consumer fraud), rather than physical (personal injury or sickness). So, class action settlement money will, in general, be taxable. The same goes for any awards resulting from employment lawsuits, or any lawsuit that does not involve physical harm.