TT has an issue with my 1099-MISC which I cannot make sense of

[Halo242]

Received a 1099-MISC incurred through a labor settlement that has two boxes filled out: Box 10 (Gross Proceeds Paid to an Attorney) and Box 16 (State/Payer’s State No.) which is xxx-xxxxx. There’s nothing else printed on the form. When I enter this into TT, it asks me which Schedule C to attach it to (which makes no sense as it wasn’t income from self-employment). I just skipped that and tried to file, but it won’t let me due to the above issue. TT also has an issue with the format of Box 16. What can I do about this? Please help.

[MaryM428]

Please delete the entry that is asking for a schedule C

Then follow these steps to enter the 1099-MISC

Federal

Wages and Income

Other Common Income

Form 1099-MISC

Then click my form has other info in Boxes 1-17
That will give Box 10 and Box 16

Give reason for 1099-MISC as lawsuit settlement

Then select This was money from a Labor settlement on next screen

Answer questions about back wages and continue with return

[Halo242]

Thank you for the taking the time to try and solve this mystery. Unfortunately, after doing exactly as you stated, after I had pressed “Continue,” a popup appeared stating, “Enter the portion of the payment you received that is considered your fees on the appropriate line. This amount will transfer to the schedule C self-employed business that you designate.” I chose to ignore it and proceed. However, just as before, at the very end — right as I’m about to EFile, TT alerts me to review the info. When I do so, the 1099-MISC appears and “Required” is next to Box 10 and the words, “You must designate which Schedule C to apply this to.” It’s an endless loop in which no solution seems inevitable. 

[AmyC]

I suggest you contact the issuer and tell them you are not an attorney and they need to issue a corrected form. I would think box 3 other income, as it is the most common.

I do not understand why you have a form showing you received attorney fees if you are not the attorney. Many lawsuits are not taxable. Do you even have taxable income?