how do I enter a legal settlement that is taxable as a capital gain?

[leesytag]

I received a settlement in a class action stockholder lawsuit. It should be taxed as a capital gain, reversing a capital loss taken in a prior year. How do I enter that? I only see how to enter it as 'other income', taxable at regular rates.

[RobertB4444]

When receiving taxable lawsuit income you should enter it as though it were the income received originally.  So wages would be entered as wages and capital gains entered as capital gains.  Enter the settlement as though you had received a 1099-B reversing the earlier loss and then it will be taxed properly.

@leesytag 

[leesytag]

Thanks @RobertB4444 !  You confirmed what I thought was the case.  Since there's no 1099B, I made up an 'issuer' called Legal Settlements, and listed them as long term - no 1099.  I assigned a zero basis, since the prior losses were taken in the year originally realized, so the recovery is fully capital gain.  I got nervous, though, because the program continues to indicate 'needs review' by the transactions.