How do I input a 1099-misc "general attorney's fees" for personal injury/emotional distress settlement so that it doesn't require a taxable amount on schedule C?

[A21114]

I received a w2 for the back wages portion, which was taxed. And I also received a 1099-misc for the emotional distress/personal injury portion, which the settlement agreement outlined was to be non-taxable. However, the employer sent a 1099-misc with that non-taxable award amount in the "attorneys fees" box and Turbotax requires a number in the schedule c taxable amount section.

[ColeenD3 · Accepted solution]

Box 10 instructions say:

Box 10. Shows gross proceeds paid to an attorney in connection with legal services. Report only the taxable part as income on your return. 

If your 1099-Misc is incorrect, you would need to get a corrected version from the issuer.

You can enter it as follows:

You can add it as Other Income.

• I'll choose what I work on
• Less Common Income select Start (or Update) for 
• Miscellaneous Income.
• Other reportable income and you can enter your own description(s) and amount(s)