How do I apply a settlement for a rear-ender car accident totaling my car of $6,904.12 from insurance group. .

It depends on what the settlement was for.

If it was for your vehicle damage, then it is not taxable income unless it resulted in a gain.  Meaning, if you ended off getting more from your car than you paid for it, then the gain would be taxable.  If the payment was because your car was totaled and that was the value the insurance company determined it was worth and you had more than that into it, then it would not be deductible.

If it was for lost wages, you would enter them as other reportable income by selecting the following:

1. Federal
2. Income and Expenses
3. Scroll down to Less Common Income and click Show More
4. Start next to Miscellaneous Income
5. Start next to Other Reportable Income