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New Member
posted Jun 3, 2019 1:30:04 PM

I received a 1099 misc as part of a court settlement from an employer. How do I get out of Schedule C?

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4 Replies
Intuit Alumni
Jun 3, 2019 1:30:05 PM

which box is checked on the Form 1099 misc?

New Member
Jun 3, 2019 1:30:06 PM

Box 3

Intuit Alumni
Jun 3, 2019 1:30:07 PM

Please see answer below

Intuit Alumni
Jun 3, 2019 1:30:08 PM

You are correct that your court settlement income is not a self-employed income and you should not pay any SE tax.  To enter the information in TurboTax Free edition, here are the steps:

1.  Sign into your account and select Take me to my return 

2.  At the right upper corner, in the search box, type in 1099 misc and Enter 

3.  Select Jump to 1099misc 

4.  On the screen Let's get the info from your 1099-MISC, enter information

5.  Follow prompts.  On the screen, Does one of these uncommon situations apply?  Select This was money                    from a lawsuit settlement and select Continue 

Your income will be taxed on line 21 of your Form 1040