Received a class action settlement and a 1099 with amount entered on Box 3, do I need to report this as income? I'm a SMLLC, single mom and can't pay those taxes

heidibetke · ‎March 14, 2020

Meaning I don't have this kind of money to pay it

KarenM90 · ‎March 14, 2020

Yes, generally all income received from a class-action lawsuit are taxable, unless they are for unreimbursed medical expenses that were not taken previously as a deduction.

To enter them in TurboTax:

Under Income & Expenses,

Scroll down to "Other Common Income" and enter them in the Form 1099-Misc Screen

Follow the on-screen prompts.

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Received a class action settlement and a 1099 with amount entered on Box 3, do I need to report this as income? I'm a SMLLC, single mom and can't pay those taxes