In 2018 a client became aware of a loss of $100,000 thru an investment that went bankrupt.  She was part of a class action lawsuit initiated in 2018 against the administrators of the investment vehicle.

Becasue of the pending lawsuit I did not report the loss on the 2018 return.

In 2019 she received partial reimbursement of around $35,000. She received a 1099-MISC with the reimbursed amount reported in box 3.  So the IRS will be looking for this to be reported as taxable other income.  I feel it needs to be reported as proceeds on Form8949 (Box C checked) with a basis of $100K/

But I'm not sure how to get ProSeries to allow me to enter the 1099-MISC box 3 amount so the IRS recognizes we've acknowledged it - but then have it shown as proceeds on Form 8949.

If I am going about this the right way, can I get ProSeries to handle it for e-filing? Or is this likely to require a paper filing?

Thanks in advance for any guidance that comes my way.