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Tax question on settlement funds received from data breach class action lawsuit

I received less than 200 dollars of identity theft settlement funds from data breach class action lawsuit in 2021, the funds were used to reimburse the money I spent on gas/postage to resolve the identity theft issues as well as to compensate for the time I spent in dealing with the identity theft. I didn't receive a 1099-misc form. Do I need to report this income in Turbotax and if yes where? Thanks.

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1 Reply
DanaB27
Expert Alumni

Tax question on settlement funds received from data breach class action lawsuit

If you did not receive a form then follow these steps to enter your lawsuit settlement:

  1. Login to your TurboTax Account 
  2. Click on "Search" on the top right and type “lawsuit settlement”
  3. Click on “Jump to lawsuit settlement”
  4. Answer "Yes" to the question "Any Other Taxable Income?"
  5. Enter a brief description and the amount

 

 

If you have any interest earned on a lawsuit settlement this is also taxable income and should be entered as a Form 1099-INT (search for 1099-INT).

 

Please see Are legal settlements taxable? for additional information.

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