To enter a Form 1099-NEC from a Lawsuit Settlement: Open your return and go to Federal >> Wages & Income >> Other Common Income >> Income from Form 1099-NEC. Click Start/Update. Or enter 1099-nec in the Search box located in the upper right of the program screen. Click on Jump to 1099-nec. On the screen Did you get a 1099-NEC?, click on Yes. On the screen Do You Want to Enter Your 1099-NECs Now?, click on Add a 1099-NEC. On the screen Let's get the info from your 1099-NEC, enter your information and click Continue. On the screen Describe the reason for this 1099-NEC, enter a reason and click Continue. On the screen Does one of these uncommon situations apply? Select This was money from a lawsuit settlement. Answer the question about back wages and enter the amount of back wages (if applicable).Only the wage portion from Form 1099-NEC will be reported as Other Income on Form 1040 Line 8z. Additional Information: Are legal settlements taxable? Where do I enter an award from a taxable legal settlement?

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1099-nec for lawsuit

Forum|Forum|2 years ago
April 7, 2024
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PatriciaV

Employee

To enter a Form 1099-NEC from a Lawsuit Settlement:

Open your return and go to Federal >> Wages & Income >> Other Common Income >> Income from Form 1099-NEC. Click Start/Update.

Or enter 1099-nec in the Search box located in the upper right of the program screen. Click on Jump to 1099-nec.

On the screen Did you get a 1099-NEC?, click on Yes.
On the screen Do You Want to Enter Your 1099-NECs Now?, click on Add a 1099-NEC.
On the screen Let's get the info from your 1099-NEC, enter your information and click Continue.
On the screen Describe the reason for this 1099-NEC, enter a reason and click Continue.
On the screen Does one of these uncommon situations apply? Select This was money from a lawsuit settlement. Answer the question about back wages and enter the amount of back wages (if applicable).