I was the head of a representative action lawsuit filed against my former employer. My lawsuit agreement states I would receive a gross payment in the form of a W2 and a payment designated as interest and penalties to be reported on a 1099. I received a 1099-misc with ONLY box 10 filled out and the amount I received within that box.
1) When it asks how much is taxable what part is taxable? Are interest and penalties paid to me but reported within box 10 as gross proceeds paid to an attorney taxable?
2) Turbotax asks me to create a schedule C but this is not self-employment so do I need the schedule C form?
3) Do I enter all of box 10 is taxable since I received the entirety and then just disregard the turbotax program asking me to review and add schedule C and file as is?
4) If I enter it as all of box 10 is taxable then it does not change my refund amount is that normal/okay?
