A business paid me $1000 due to a misprint in their marketing and reported it on 1099 MISC box 14. When I enter this information into TurboTax, I'm treated like an independent contractor with a business, which I'm not. How can I accurately report this income?
It's possible this is business income, if you are a lawyer.
Form 1099-MISC Box 14 reports gross payments to an attorney. If this doesn't describe you, then you should request a corrected 1099-MISC.
Most legal settlements are reported on Form 1099-MISC, but in Box 3 "Other Income." This allows you to report the income as not related to a business and avoid any self-employment taxes.