Dell Tech Litigation Payment

Tax implications of settlements and judgments states: The key question to ask is: "What was the settlement (and its corresponding payments) intended to replace?"

If the lawsuit was in regards to taxable income, the lawsuit proceeds would be taxable income.

Yes, the shift from Ameritrade to Schwab created issues since not all information carried over. 

A lawsuit settlement should have sent you a 1099-MISC with the income in box 3. Follow these steps:

1. Log in to your return.
2. Go to income
3. Scroll down to Other Common Income
4. Select Income from 1099-MISC
5. Edit/ Start/ Revisit
6. Enter income -the income should be in box 3,
7. Enter tax if any withheld in box 4
8. Continue
9. Describe the reason -
10. continue
11. None of these apply
12. Continue
13. Did this involve main job?
14. No 
15. Continue
16. How often do you get?
17. Got in 2024 
18. Continue
19. Intent to earn money?
20. No
21. Continue
22. Do you have another?
23. No
24. Continue