Have a Tax Question? Ask a Tax Expert
IS this settlement for physical injury?
If yes, than it is not taxable. In which box is it reported on Form 1099 MISC
Yes, it is a physical injury. The amount is reported in box 3
You will not report any income from the Form 1099 MISC received for physical injury unless you had claimed medical expenses deduction for such injury on your tax return.
You may want to include a note to this effect in the tax return.
How do I do that if I am filing electronically with Turbo Tax?
Also, do I just ignore the 1099, or do I report it as box 3 on the tax form?
Turbo tax should allow you to add a statement to your return. Efiling is allowed with such statement.,
Including the amounts on tax return will increase your tax liability.