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How do I enter a settlement from a class action lawsuit

I have the same problem! What to do about it?

GeorgeM777
Expert Alumni

How do I enter a settlement from a class action lawsuit

We need you to clarify and provide some additional tax information about your tax situation.  The previous poster you reference seemed to have an issue with entering an EIN.  Is finding/entering the EIN your tax issue?  Also, what type of income are you trying to report?  Many on this post seemed to have legal settlements to report.  If you can provide additional information, we can better understand your tax situation. 

 

@pmersereau 

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How do I enter a settlement from a class action lawsuit

Yes, It's about a legal settlement check which appeared with no 1099-MISC and hence no EIN. 

MayaD
Employee Tax Expert

How do I enter a settlement from a class action lawsuit

What type of settlement did you receive?

Physical injury or sickness settlements (dog bites, mesothelioma, etc.) are nontaxable and don't need to be reported unless you deducted medical expenses related to the injury on a previous tax return and you received a tax benefit from the deduction. In that case, report the medical expenses related to the incident as miscellaneous (other) income.

For more information please check:

Are legal settlements taxable?

Settlements—Taxability

 

To report taxable legal settlements not reported on a 1099-MISC:

  1. Sign in to TurboTax and open or continue your return
  2. Search for lawsuit settlement and select the Jump to link
  3. Answer Yes to the question Any Other Taxable Income?
    1. If you've already entered miscellaneous income, select Add Another Miscellaneous Income Item
  4. Enter a brief description and the amount you received and select Continue
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JG1902
New Member

How do I enter a settlement from a class action lawsuit

I'm having the same issue: in 2022 I received a check for a settlement reward with no EIN. 

 

-The case is Facebook Biometric Information Privacy Litigation. (Facebook allegedly violated the privacy of users in my state by misusing biometric information but FB is not admitting fault, just settling the case.)

 

-No physical injury or physical sickness is involved, no lost wages or profits, and no loss-in-value of property. 

 

Turbotax is not allowing me to file electronically without the EIN; it gives me a message saying I will have to file by mail. Is there any way around this?

JG1902
New Member

How do I enter a settlement from a class action lawsuit

Oops, never mind. I just used the link you recommended and everything is fine! Thanks for the suggestion.

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