1099 misc

Generally, you will have to enter your 1099-MISC and then deduct the loss on your return in the appropriate area on your return, if it allowed to be deducted.  Generally, all taxable damages are required to be reported in Box 3.

Please follow the instructions below:

1. Open or continue your return, if you're not already in it.
2. Search for 1099-misc and select the Jump-to link.
3. Click Add a 1099-MISC.
4. Enter the amounts shown. 
5. Describe the reason for this 1099-MISC.
6. Answer This Money Was From a Lawsuit Settlement on the screen Does one of these uncommon situations apply?
7. Answer No, it was not back wages for the next question.
8. Answer No for the question Did you have another 1099-MISC?
9. Your 1099-MISC will flow to Other Income.