How do you report only 50% of income on a 1099 misc from a long term disability insurance settlement?

[hannaldahlstrom]

The insurance premium as paid 50% by my employer and 50% by me with post tax dollars.  So I have read the portion my ex employer paid is taxable.  The 1099 I received is the full amount I received.  How do I report only the 50% that is taxable?

[KrisD · Accepted solution]

Enter the 1099-MISC and then enter a negative amount that represents the amount that should not be taxed. 

After entering the 1099-MISC, please follow these steps:

Sign into your account and your return

Type   other reportable income   into the Search Box and click the “Jump to other reportable income” link

-OR-

Click Federal on the left side-bar

Click Wages & Income along the top

Scroll down to the last section Less Common Income and click Show more to open drop-down

Scroll down to last section Miscellaneous Income and click Start

Scroll down to the last section Other reportable income and click Start

Enter the description as “non-taxable portion of disability” and the amount as a negative number (be sure to make it negative)

This negative amount will be entered on line 21 to offset the 1099-MISC