Did you receive a 1099-MISC for your legal settlement? Legal settlements are often taxed. It depends on the type of settlement and would have been mentioned in your settlement agreement. Generally, physical injury settlements aren't taxable unless you deducted medical expenses from the injury on a previous tax return. Non-injury settlements are considered other taxable income. You should receive a Form 1099 if your settlement is taxable. You will be taxed on the income based on the tax bracket that you fall in and the federal income tax rates.
Please see the TurboTax article Are legal settlements taxable? for more information.
If you receive a form 1099-MISC, follow the instructions in the TurboTax article Where do I enter a 1099-MISC?
Refer to the TurboTax article Where do I enter an award from a taxable legal settlement? for instructions for entering your settlement if you didn't receive a 1099-MISC.
If you would like to speak with someone from TurboTax, you can request a call if you have TurboTax Live or add Plus benefits to the Free Edition. Refer to the TurboTax Help article How do I contact TurboTax?
Refer to the TurboTax article What's the TurboTax phone number?
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