I have the software for 2023 returns. I received a 1099-NEC for an personal injury settlement. The award was for injuries only. How is this entered in the software?

Forum|Forum|2 years ago
January 30, 2024
1 reply
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When I entered in I keep getting a information missing error. I have checked the box indicating that it was an insurance settlement. Still getting the information missing error.

TurboTax Free Edition Online

RobertB4444

The important thing about entering the 1099-NEC for something like this is making sure that you tell the system that this was not an attempt to earn money. Otherwise it becomes self-employment income.

The best way to enter an injury settlement, however, is to not enter the 1099-NEC at all. Delete that to start with.

Then, scroll down to the bottom of the 'Wages and Income' section to 'Less Common Income'. The very last entry in that section is 'Miscellaneous Income'. Click on that.

The system will ask if you got a settlement, you click yes. Then enter 'Personal Injury Award' and the exact amount from the 1099-NEC. Click done.

@kingwireman

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