You report it as "other income" on Schedule 1 line 8. Here's how to enter it in TurboTax.
In the Search box type "lawsuit settlement" (without the quotes), then click the link that says "Jump to lawsuit settlement." I know that's not what you have, but it's the only search term I could find that gets you to the right place.
The first screen asks, "Any Other Taxable Income?" Click Yes.
On the next screen, "Other Taxable Income," enter a short description such as "Surveys" and enter the total amount. Click Continue.
On the next screen click Done.
The income will be reported on Schedule 1 line 8 with the description that you entered.
Do you really have to report that as income if you didn't make over 600 dollars unless you need to build up your income. Did they send you a 1099 on that income if so you must add it. there is a lot to think about do you also pay ssn and medicare , state tax if your state has one.
If you are required to file a tax return (check this chart), then you are required to report ALL of your income, even interest of $1. The $600 reporting refers to issuing 1099-MISCs. If anyone pays you more than $600, they have to issue you a 1099. Same if you pay someone over $600 in the course of your business, you would issue them a 1099.
There is no social security and medicare tax paid on ''Other Income''. Only wages and salaries and self-employment pay FICA (social security and medicare). @ctxcharlie