How should a 1099 misc be filled out for a personal injury settlement

[4melindy]

I was told my lawyer that settled my claim I would not have to pay taxes on an injury settlement. Why did I get this form with box 7 filled in with my settlement amount?

[PatriciaR]

Here are the steps to enter your 1099-MISC for a personal injury settlement:

• Select Personal (top of page) then Personal Income
• Select I'll choose what I work on
• Under Other Common Income, select Start next to Income from Form 1099-MISC
• Answer the questions about who paid you and entering federal ID number and enter the amount from box 7
• Select Continue and on next page describe the reason for the 1099-MISC
• On the next page, check the box that reads This was money from a lawsuit settlement

Click on screenshots for detail