Welcome to the Community, @superrooster53. I appreciate your question about recording and categorizing personal injury settlement in Quickbooks Self-Employed (QBSE).
To give you an idea, QBSE is following the Schedule C form to report your self-employment revenues and expenditures. This way, it matches with the IRS.
You can follow these easy peasy steps below to enter this transaction manually to QBSE. Then, select the nearest category based on Schedule C.
I'll show you how:
Go to the Transaction menu, then select Add Transaction.
Enter the amount and a description, then select the category type in the Select a category menu.
If you have a receipt, you can drag and drop it onto the form, then select Save.
If you can't find the right one listed in the Schedule C category, I'd recommend you check with your accountant. They can help you decide on how to categorize them properly in your QBSE account.