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Do I claim a class action settlement?

The amount received was under $200.
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1 Best answer

Accepted Solutions
NicoleU
New Member

Do I claim a class action settlement?

Yes, legal settlements are reported as "Other Taxable Income."

You may or may not receive a 1099-MISC reporting the income. Regardless, this is how you should enter it:

  1. Click on Federal Taxes 
  2. Wages & Income > I'll choose what I work on.
  3. Other Common Income section, click Show more
  4. Form 1099-MISC, click on the Start/Update
  5. Did you get a 1099-MISC?, click Yes
  6. Let's get the info from your 1099-MISC, box 3 Other Income, click Continue
  7. Describe the reason for this 1099-MISC, click Continue
  8. Select This was money from a lawsuit settlement on the Does one of these uncommon situations apply? screen and then answer the back wages question before clicking Continue.






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2 Replies
NicoleU
New Member

Do I claim a class action settlement?

Yes, legal settlements are reported as "Other Taxable Income."

You may or may not receive a 1099-MISC reporting the income. Regardless, this is how you should enter it:

  1. Click on Federal Taxes 
  2. Wages & Income > I'll choose what I work on.
  3. Other Common Income section, click Show more
  4. Form 1099-MISC, click on the Start/Update
  5. Did you get a 1099-MISC?, click Yes
  6. Let's get the info from your 1099-MISC, box 3 Other Income, click Continue
  7. Describe the reason for this 1099-MISC, click Continue
  8. Select This was money from a lawsuit settlement on the Does one of these uncommon situations apply? screen and then answer the back wages question before clicking Continue.






Do I claim a class action settlement?

Most class action lawsuit settlements do not send a 1099-MISC, if you did not receive one and follow this answer, it will show a red exclamation point error, asking for EIN or SSN which one is not going to have if they don't send a 1099-MISC.

To resolve, follow instructions in following answer.

https://ttlc.intuit.com/questions/4324380-i-recieved-a-class-action-lawsuit-settlement-from-fedex-co...

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