turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

How and where do I report income from a settlement?

Do I need to report non  taxable income from a settlement?
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

5 Replies
JamesG1
Expert Alumni

How and where do I report income from a settlement?

Nontaxable legal settlements do not have to be reported on your tax return.

 

In most cases, taxable legal settlements will be reported to you on a W-2, 1099-Misc or other IRS form.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

How and where do I report income from a settlement?

Non taxable settlements do not go on your tax return. There is no where to report them, because the taxes have already been taken from your money during the settlement process. Don't worry, it's your money and they know it because the sender of the money reported it as a legal expense and company loss. Been there, done that. Double checked it with lawyers and tax accountant when it happened to me.

Irene2805
Expert Alumni

How and where do I report income from a settlement?

So, if you're sure the settlement is nontaxable, you don't need to report it on your return.

How and where do I report income from a settlement?

I received non taxable settlement from personal injury..I want to add it to my taxes..I tried to add it  to “other income” as a negative amount in Misc but at the end TurboTax won’t let me file it electronically..where I can include it in my taxes so TurboTax won’t calculate taxes on it?

SusanY1
Expert Alumni

How and where do I report income from a settlement?

You do not report nontaxable income on your tax return. Do not list it on the return at all.

 

@victoryiamartynovich

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question