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jfuerte
New Member

TT asking for Schedule C when inputting 1099 MISC for lawsuit settlement for my wife

My wife got a class actions lawsuit settlement from her job for $150.  Because of this she was sent a 1099 MISC for the income.  When I get towards the end and review everything it's asking me to select a schedule C to add this to, but unless I'm totally wrong this shouldnt be considered self employment income right?  What am I doing wrong?

 

Here's a couple other tid bits that could help:

1.  I do have a 1099 NEC that I have input for myself since I did contracted work in 2020

2.  The income of $150 shows up in box 3 of the 1099 MISC along with the W2 portion on the bottom half which I've already input as well.  Box 10 also has $139.80 for gross proceeds to attorney

3.  I input the 1099 for my wife under the Other Common Income section

4.  TT is saying that box 10 for the attorney fees is what needs to be linked to a schedule C

 

Thanks for any help!

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1 Reply
AmyC
Expert Alumni

TT asking for Schedule C when inputting 1099 MISC for lawsuit settlement for my wife

Attorneys are paid and receive the wages, the program thinks you wife is a lawyer that earned $139.80 now. Empty that box. You only need to report what she actually received, in box 3. You may want to contact the issuer and ask for a corrected form. I feel like if the IRS did care enough to ask, they would accept your simple explanation and not have a problem.

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