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You need to report the settlement as income on your tax return.
If you had damages to non-business property, the only way to deduct the value of it would be to report it as a casualty loss. It may not benefit you though, as it is an itemized deduction, so if you take the standard deduction, you will get no benefit from it.
You can use these menu tabs in TurboTax to record a casualty loss:
In addition to response by ThomasM125, you can follow the instructions below to enter your 1099-MISC:
Thanks for your reply. I am working under the assumption based on my research that under the construction easement agreement payment of severance damages to land retained by the owner can be offset against the basis of the land and is not taxable income. I do have to report it received but it is difficult to determine where to offset the income with an expense/deduction. Seems too complicated a situation to file myself. I may try a different method to file
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