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New Member
posted May 31, 2019 10:58:44 PM

Do I claim a class action settlement?

The amount received was under $200.

0 2 4458
1 Best answer
New Member
May 31, 2019 10:58:46 PM

Yes, legal settlements are reported as "Other Taxable Income."

You may or may not receive a 1099-MISC reporting the income. Regardless, this is how you should enter it:

  1. Click on Federal Taxes 
  2. Wages & Income > I'll choose what I work on.
  3. Other Common Income section, click Show more
  4. Form 1099-MISC, click on the Start/Update
  5. Did you get a 1099-MISC?, click Yes
  6. Let's get the info from your 1099-MISC, box 3 Other Income, click Continue
  7. Describe the reason for this 1099-MISC, click Continue
  8. Select This was money from a lawsuit settlement on the Does one of these uncommon situations apply? screen and then answer the back wages question before clicking Continue.






2 Replies
New Member
May 31, 2019 10:58:46 PM

Yes, legal settlements are reported as "Other Taxable Income."

You may or may not receive a 1099-MISC reporting the income. Regardless, this is how you should enter it:

  1. Click on Federal Taxes 
  2. Wages & Income > I'll choose what I work on.
  3. Other Common Income section, click Show more
  4. Form 1099-MISC, click on the Start/Update
  5. Did you get a 1099-MISC?, click Yes
  6. Let's get the info from your 1099-MISC, box 3 Other Income, click Continue
  7. Describe the reason for this 1099-MISC, click Continue
  8. Select This was money from a lawsuit settlement on the Does one of these uncommon situations apply? screen and then answer the back wages question before clicking Continue.






Level 2
May 31, 2019 10:58:48 PM