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January 27, 2023
Question

I was given a 1099-MISC as part of a lawsuit settlement for an old job. When I try to file, "Check This Entry" pops up and I can't check the box they want me to check?

  • January 27, 2023
  • 1 reply
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They want the Back Wages box to be checked, but I can't check it in the "Check This Entry" screen, and when I go back to the form itself there isn't a box to check.

1 reply

January 27, 2023

Legal settlements that are taxable (including previously deducted medical expenses related to physical injury or illness) are entered as miscellaneous (other) income.

 

If you received a 1099-MISC:

 

  1. Sign into TurboTax and open or continue your return.
  2. Search for 1099-misc and select the Jump to link.
  3. If you're asked, Did you get a 1099-MISC? answer Yes.
    1. If you have already entered a 1099-MISC, select Add Another 1099-MISC
  4. Enter the information from your 1099-MISC and select Continue.
  5. On the Describe the reason for this 1099-MISC screen,
    enter lawsuit settlement and select Continue.
  6. On the Does one of these uncommon situations apply? screen, select This was money from a lawsuit settlement and then answer the back wages question before selecting Continue.

If you did not receive a 1099-MISC, follow these steps to report the income:

  1. Sign into TurboTax and open or continue your return.
  2. Search for lawsuit settlement and select the Jump to link.
  3. Answer Yes to the question Any Other Taxable Income?
    1. If you have already entered miscellaneous income, select Add Another Miscellaneous Income Item
  4. Enter a brief description and the amount you received and select Continue.

 

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