Background: while this is similar to other questions about 1099s, this situation still feels unique. I received a lawsuit settlement from an old employer related to work performed years ago when I both lived and worked in a previous state (CT). Part of that settlement was reported as back-wages on a W-2, with CT income tax withheld. It is clear that income must be reported as non-resident wages to CT. I also received a 1099-MISC with "statutory multiplier damages" paid in Box 3. No federal or state taxes were withheld. Because this is not wage income, per se, do I report it as earned in my current resident state? Or is is still considered CT income like the wage portion of the settlement. (Btw, I'm taking for granted that statutory multiplier damages are fully taxable, but would LOVE to be mistaken.) Thanks!
