turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
turbotax icon
turbotax icon
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

I won a lawsuit.where do I input that

 
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions
LindaA
Expert Alumni

I won a lawsuit.where do I input that

Where you enter a taxable legal settlement depends on whether it was reported on a Form 1099-MISC or not. Note that interest earned on settlements is taxable income and should be entered as a Form 1099-INT.


To enter a settlement reported on a 1099-MISC:

  • Continue your return in TurboTax Online. (If your return isn't open, you'll need to sign in and click Take me to my return.)
  • Click My Account (top right of your screen).
  • Select Tools.
  • In the pop-up window, select Topic Search.
  • In the search bar, type 1099-misc.
  • In the results box, highlight 1099-misc, then click GO.
  • Answer Yes to the question Did you get a 1099-MISC?
  • Fill out the boxes from your paper 1099-MISC and then click Continue.
  • 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 clicking Continue.
 

To enter a settlement not reported on a 1099-MISC:

  • Continue your return in TurboTax Online. (If your return isn't open, you'll need to sign in and click Take me to my return.)
  • Click My Account (top right of your screen).
  • Select Tools.
  • In the pop-up window, select Topic Search.
  • In the search bar, type lawsuit.
  • In the results box, highlight lawsuit settlement, then click GO.
  • Answer Yes to the question Any Other Taxable Income?
  • Enter a brief description and the amount you received and click Continue.

Note: If using the TurboTax CD/Download software, you'll use the Find function (instead of "My Account") to search for the topic.



Please see the FAQ below for more information.


Are legal settlements taxable? https://ttlc.intuit.com/replies/4787698

View solution in original post

1 Reply
LindaA
Expert Alumni

I won a lawsuit.where do I input that

Where you enter a taxable legal settlement depends on whether it was reported on a Form 1099-MISC or not. Note that interest earned on settlements is taxable income and should be entered as a Form 1099-INT.


To enter a settlement reported on a 1099-MISC:

  • Continue your return in TurboTax Online. (If your return isn't open, you'll need to sign in and click Take me to my return.)
  • Click My Account (top right of your screen).
  • Select Tools.
  • In the pop-up window, select Topic Search.
  • In the search bar, type 1099-misc.
  • In the results box, highlight 1099-misc, then click GO.
  • Answer Yes to the question Did you get a 1099-MISC?
  • Fill out the boxes from your paper 1099-MISC and then click Continue.
  • 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 clicking Continue.
 

To enter a settlement not reported on a 1099-MISC:

  • Continue your return in TurboTax Online. (If your return isn't open, you'll need to sign in and click Take me to my return.)
  • Click My Account (top right of your screen).
  • Select Tools.
  • In the pop-up window, select Topic Search.
  • In the search bar, type lawsuit.
  • In the results box, highlight lawsuit settlement, then click GO.
  • Answer Yes to the question Any Other Taxable Income?
  • Enter a brief description and the amount you received and click Continue.

Note: If using the TurboTax CD/Download software, you'll use the Find function (instead of "My Account") to search for the topic.



Please see the FAQ below for more information.


Are legal settlements taxable? https://ttlc.intuit.com/replies/4787698

Manage cookies