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Yes, you should have not received From 1099-NEC should have received Form 1099-MISC to report your lawsuit settlement.
Form 1099-NEC is the Internal Revenue Service (IRS) form used by businesses to report payments made to independent contractors, freelancers, sole proprietors, and self-employed individuals.
You should enter the form 1099-NEC in the Other Common Income section of TurboTax and then Income from Form 1099-NEC. Make sure you enter the payer's federal ID number correctly, using the proper format. After you enter the form, make sure you answer all of the questions properly. On the screen that says Does one of these uncommon situations apply? choose the This was money from a lawsuit settlement option.
So, review your entries and If you still have an error, try deleting the entry and re-enter it.
if it's nontaxable, you should not have gotten an NEC so provide more info about what the lawsuit and settlement were about.
It was a property damage suit.
The damages were not punitive, were significantly less than the value of the property - so no capital gains.
@ThomasM125
The same issue occurred. Under "this money was from a lawsuit" > "it is not for back wages" the MISSING INFO still populates. After talking to two different TurbTax consultants, we've probably deleted and re-entered it a dozen times.
I've tried under Wages/Income "enter a 1099-NEC", searching fo 1099-NEC and utilizing the "Jump to" function, attempted entering under "Other Income" or "Uncommon Income" as well.
I'm checking with my accountant to see if they should even sent me a 1099-NEC.
Yes, you should have not received From 1099-NEC should have received Form 1099-MISC to report your lawsuit settlement.
Form 1099-NEC is the Internal Revenue Service (IRS) form used by businesses to report payments made to independent contractors, freelancers, sole proprietors, and self-employed individuals.
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