I received insurance payments for lost wages due to an accident, not related to a business. Why is the software forcing me to use Schedule C instead of "Other Income"?

[hatemsacmco]

I received payments from my insurance company for lost wages due to a temporary total disability caused by an accident. These payments were deposited directly into my bank account and are not related to any business, self-employment, or professional activity. Despite this, the software is forcing me to report the income under Schedule C, requiring me to provide a business name, code, and accounting method. However, this is not a business, and these payments are simply a replacement for wages lost during my recovery period. I need help understanding why the software directs me to Schedule C instead of allowing me to report this as "Other Income" or another appropriate category. Please clarify how to correctly categorize this type of income.

[BrittanyS]

The income from lost wages would be reported as miscellaneous income, not Schedule C income.  To enter this in TurboTax you will follow these steps:

1. Sign in to TurboTax and open or continue your return.
2. Click Wages & Income
3. Click add more income
4. Click Other Common Income
5. Click Start next to 1099-MISC
6. If you're asked Did you get a 1099-MISC?, answer Yes.
   1. If you've already entered a 1099-MISC, select Add Another 1099-MISC.
7. Input the information from your 1099-MISC and select Continue.
8. On the Describe the reason for this 1099-MISC screen,
   type in lawsuit settlement and select Continue.
9. On the Does one of these uncommon situations apply? screen, select This was money from a lawsuit settlement and then answer the back wages question before selecting Continue.

Steps for entering a 1099-MISC can be found at:

• How to enter 1099-MISC