"Check this entry" error for a Form 1099-MISC (lawsuit settlement)

[tenniseric98]

After doing the Smart Check on Turbotax Desktop for my federal taxes, I get this message:

"Check This Entry
Form 1099-MISC Worksheet (_________________): A link to Schedule C, Schedule F, Form 4835, or the Other Income Statement must be entered. To associate this amount with the proper tax form double-click on the field provided or check the box for the form you want to link this amount to."

The blank is the name that I put for the check that I received from a legal settlement.

I had followed the instructions on this page (Where do I enter an award from a taxable legal settlement?), so I am confused on why I am getting this message and how to resolve it.

Any help would be apprecaited, thanks!

[ReneV4]

This message means that TurboTax is trying to link this 1099-MISC to a Schedule C, or other business. However, that does not apply to your situation because this 1099-MISC was issued for a lawsuit settlement. To enter this Form 1099-MISC, do the following:

1. Go to Wages & Income
2. Click on the + Add more income box
3. Scroll down the screen until you see Other Common Income and click the down arrow to show more
4. Choose Add to the right of the 1099-MISC line
5. Click Yes when asked if you received Form 1099-Misc, then Continue
6. Enter the info from your Form 1099-Misc into the corresponding boxes when you reach, "Let's enter the income from your 1099-MISC"
7. If you need to enter boxes 4–6 or 8–17, check My form has other info in boxes 1–17
8. Describe the reason for this 1099-MISC, then Continue
9. Check the, "This was money from a lawsuit settlement" when you reach, "Do any of these uncommon situations apply?"
10. Also indicate whether any part of the settlement was for back wages, then Continue

Also, to ensure you do not double the amount from the form, delete the prior entry.

[tenniseric98]

Hi, 

Thanks for the reply but it seems like these steps don't apply to TurboTax desktop edition.

I think the issue is that TurboTax is requiring a payer's federal ID number, but I don't have one for these legal settlements.

I searched for "1099 misc" in the "Seach Topics" button, and it won't let me get past the "Let's enter the income from your 1099-MISC" screen without a payer's federal ID number. 

[ThomasM125]

The error message references a Form 1099-MISC entry, so I assume there is one in the program.

You can likely solve this issue by editing the Form 1099-MISC entry and when asked questions about it, indicate that it was not associated with your main job, you only received the money in 2025 and you did not have a profit motive associated with it. If you do that, it won't be associated with a business as it is being treated now.

You may need to delete the Form 1099-MISC entry and re-enter it to re-set its treatment in the program.

Follow these instructions:

1. Choose the Tax Tools option on your left menu bar while working on your return

2. Choose Tools

3. Choose the Delete a form option under Other Helpful links 

4. Find the Form 1099-MISC in the list and delete it

If you don't have a Federal ID number for the income, then you need to enter it in the Less common income section under Wages and Income, look for Miscellaneous income on the bottom of the list.

[tenniseric98]

I wasn't able to follow your instructions, but I ended up just clicking "Forms" at the top of the application, finding/searching for the 1099 MISC, and then going to Forms > Remove ... in the Mac toolbar.

Removing the form solved the issue. I think I had started a 1099 MISC before finding the article that I linked in my original post, which I wasn't supposed to do.

Thanks all.