1099-NEC Received for Lawsuit Settlement Missing Information Error

5 replies
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I received a 1099-NEC for an injury settlement.

When I fill out the information correctly, including that it's from a lawsuit and does not include any back wages, I get a message saying information is missing. I've included all the information on the 1099. I can't override this and I get a warning that the form will be deleted if I don't complete the missing information.

Dozens of other people appear to be running into the same issue. What is the solution? Thank you.

ShirlynW

Level 8

We are aware of this experience and I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

Sign into your online account.
Locate the Tax Tools on the left-hand side of the screen.
A drop-down will appear. Select Tools
On the pop-up screen, click on “Share my file with agent.”
This will generate a message that a diagnostic file gets sanitized and transmitted to us.
Please provide the Token Number that was generated in the response.

@territerese
[Edited 02/14/22| 4:54pm PDT]

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territereseAuthor

Level 2

Thank you for your time. That's the procedure I followed. Once you input the data from the 1099, it asks if any of these "uncommon" things apply. One of the choices is that the payment was for a lawsuit. When you check that box, it asks if any of the payment was for lost wages. Mine was not, so I answered "no".