Reimbursement versus settlement

[Aibrean21]

I paid my condo $2,000 to cover the cost of the repairs to common areas resulting from a leak in my unit.  I subsequently disputed the charge because it was due to a faulty repair made by the condo.  A settlement was reached where the condo explicitly agreed to "reimburse me $1,900 for fees paid to cover the cost of repairs to the common areas".  Instead of paying me directly the check came from an insurance company with which I have no relationship.  I have been told the company will issue a 1099 MISC because it has somehow classified it as a "settlement."

Given that the insurance company will not deal with me and the condo refuses to engage, it was suggested to me that I should include the check in income and offset it as "fees paid" on line 26 of Schedule 1.

Is this the correct treatment?

Thanks in advance for your advice and could you kindly directly me to where I can find this matter addressed in IRS Publications.

[Vanessa A]

Yes, since this was a refund to you and not a legal settlement, you would include the 1099 in income and then offset it on line 26 of Schedule 1 as an adjustment. 

To do this in TurboTax you will select the following (note your navigation may be slightly different due to differences in user experiences)

1. Federal
2. Wages and Income
3. I'll choose what I work on
4. Less Common Income
5. Miscellaneous Income
6. Other Reportable Income