Vanessa A
Expert Alumni

Get your taxes done using TurboTax

Why did you receive the lost wages?  Was it for a personal injury?  If so, they are not taxable.  

 

If it was punitive damages for reason other than personal injury, then it is taxable income and would be entered as wages like your W2 wages are entered.  The insurance company SHOULD have withheld FICA taxes, so it would be a good idea to contact them to see if they did issue a form you did not receive. If you cannot get a response from them, you can contact the IRS at 800-829-1040 to see if they can help you.

 

 

To report this income without a W-2 you will select the following:

 

  1. Income
  2. Less Common Income
  3. Miscellaneous Income
  4. Yes to Other Wages Received. 
  5. Continue through to enter the settlement received. 

 

 

 

Tax Implications of Settlements and Judgments

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