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Since you received a 1099-misc for some or all of your award, it has to be reported received on your 1040. Then you can report it as nontaxable, leaving $0 taxable income to computer a tax.
Line 21, other income, is where you report the 1099 amount. This allows IRS to match your reporting with the 1099 they received.
Note, you need to report a corresponding negative for the same amount.
Form 1040, line 36 is where you report the deduction to report in net what you believe to be the taxable portion of your settlement.
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