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I just received a 1099-MISC for a lawsuit settlement from a prior employer. I am attempting to amend my return, but cant get past the second review.

The section I'm checking says to "double click to link to Schedule C, but nothing happens.
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1 Reply
KathrynG3
Expert Alumni

I just received a 1099-MISC for a lawsuit settlement from a prior employer. I am attempting to amend my return, but cant get past the second review.

Form 1099-MISC for a lawsuit settlement should not be linked to Schedule C. Schedule C is for self-employment income. Since this is coming from an employer, by definition, this is not self-employment income.

 

Taxable Legal Settlements are entered in the Wages & Income tab under Other Common Income. For settlements reported on Form 1099-MISC, be sure to describe the reason as Lawsuit Settlement and select This was money from a lawsuit settlement on the page entitled: Does one of these uncommon situations apply?

 

For more details, see: Are legal settlements taxable?

Otherwise, to make changes, follow these steps: How do I amend my 2020 return?

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