1099 MISC and W-2 received for OT lawsuit

Received payment for an OT settlement. Total was $2,348 but was sent a W-2 for $782 with taxes withheld (entered in Wages portion of TT) and 1099-Misc for $1,565.   Entering the 1099MISC as a lawsuit prompt TT to ask if any part was for wages, so I answer, but really the $1565 was for penalties and interest. With that said, no matter how I am entering it I am being asked to provide information for Schedule C and Form 3514 which I do not have. What am I doing wrong?