What was the nature of the class action lawsuit?
What code was reported in box 14 of the W-2? Was state income and state income tax withheld reported in boxes 15 through17? If so, what state?
Were you advised that the settlement would be taxable?
Were you advised that the settlement was nontaxable?
Sometimes the paperwork concerning a class action settlement may be found online and provides direction as to how to report the proceeds of the class action settlement.
IRS Publication 4345 addresses the taxability of lawsuits.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
