1099 From Lawsuit

[Justataxguy]

Client received a 1099 Misc with over $22k in box 7. Says it "is the amount that had to be taxed for income in a lawsuit that was settled". It is from an employer they worked for over 4 years ago. So does it go on line 21 as other income or does it go on a Sch. C and if so as what?

[jimmcg]

Read the settlement agreement and see what the settlement was intended to cover. That will determine the taxable nature of the settlement.