I received a 1099 NEC for a CA wait time penalty. I believe it is federally taxable but not FICA taxable as it is not wages. Is it CA taxable also?
And more importantly - how do I enter it - it doesn't really fit any of the uncommon situations (own a farm, should be on a W2, medicaid waiver etc). Do I select 'money from a lawsuit settlement?' or 'not earned as an employee or self- employed, it is from a sporadic activity or hobby'. If I choose none of these then it wants me to complete a Schedule C and enter Business Income and expenses and that makes no sense in this situation.
Thank you!
