Yes, This is not Self-Employment income.
You would post it to:
Wages & Income
- Scroll to Other Common Income
- Select Income from a 1099-MISC
- Post your information from the form [Continue]
- Describe the reason for this 1099-MISC
- Post Moving Incentive
- Does one of these uncommon situations apply?
- Select None of the above
- Did the moving incentive involve work that's like your main job?
- How often did you get income for moving incentive?
- Check Got it in 2020
- Did the moving incentive involve an intent to earn money?
- Answer No
If you do not follow this posting procedure it will result in self-employment. You would also have to pay 15.3% in self-employment tax (Social Security & Medicare).
**Mark the post that answers your question by clicking on "Mark as Best Answer"
I received the 1099 for Chinese drywall settlement but it has cost me more than the settlement to replace everything effected by it. Do I need to claim the money as income. I have never claimed the loss the damages.
If you received a 1099-MISC for damages, then you must report it on your tax return. You can, however, enter an offsetting amount equal to the actual damages incurred (up to the amount of the settlement). Please keep records of the costs you incurred to repair the damage (i.e. replace the defective drywall).
If the 1099-MISC reports income that is not related to your main job or self-employment, enter the information as follows in the 1099-MISC interview:
Type "1099 misc" in the search window
Click on "jump to 1099 misc"
Enter the information from your Form 1099-MISC, and click on Continue
Enter a description and click on Continue
On the screen with "Does one of these uncommon situations apply?", indicate "None of these apply"
Answer "No..." to "Did the [Description] involve work that's like your main job?"
Answer "I got it in 2020" when asked "How often did you get income for [Description]?"
Answer "No, it didn't involve an intent to earn money."
The amount will be reported on line 8 of Schedule 1 (Form 1040).
To enter the adjustment:
Click on "jump to other reportable income (or "other reportable income" in the Search Topic results)
Type "other reportable income" in the search window (or in the Search Topic window for desktop versions)
Answer "No" to "Did you receive any other wages?"
Select "Other reportable income" from the Miscellaneous income list
Select Add another Income item on the Other Miscellaneous Income Summary screen
Enter a Description and amount, then click on Continue
A corresponding negative amount will be entered, and line 8 of Schedule 1, will be zero.