DawnC
Expert Alumni

Get your taxes done using TurboTax

Indicate that this is a lawsuit when entering the 1099-MISC.   When you click the radio button  •This money was from a lawsuit settlement, a drop-down will ask if any of this income is for back wages.  Since you are going to enter the W-2 for the wage portion, answer NO, this is not for back wages.   This will put the amount of the 1099-MISC on Line 8 of Form 1040 and it will be taxed as ordinary income.  

 

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