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Due to class action suit received aa 1099 misc

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Intuit Alumni

Due to class action suit received aa 1099 misc

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 in TurboTax:

  1. Click on Federal Taxes > Wages & Income  [In TT Self-Employed:  Personal > Personal Income].
  2. Scroll down to the Other Common Income section and click on the Start/Update box next to Income from Form 1099-MISC. [See Screenshot #1, below.]
  3. If you previously entered a 1099-MISC. in your return, you will be brought to the 1099-MISC Summary page.  Click on the Add Another 1099-MISC. box to add a new form [or Edit to change an existing form].  [Screenshot #2]
  4. If you haven't already entered a 1099-MISC, answer Yes to the question Did you get a 1099-MISC? (even if you didn't get one).
  5. On the Let's get the info from your 1099-MISC screen, complete the top part and then enter the award amount in Box 3 Other Income. [Screenshot #3]
  6. Fill out any other boxes from your paper 1099-MISC (if you have one), then click Continue.
  7. Enter a reason for the 1099-MISC. [Screenshot #4]
  8. On the screen, Does one of these uncommon situations apply? select This was money from a lawsuit settlement  and then answer the back wages question before clicking Continue.  [Screenshot #5]

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