13sgard
New Member

My 1099-misc form does not have the boxes listed in turbo tax. How do I report income received from a settlement?

My form includes items such as federal, state, social security and medicare taxes withheld.  On the top of the form, but not inside the boxes forms there is an area that includes gross settlement award, wages, non-wages, interest and taxes withheld.  Please advise how to report this information.

KrisD
Intuit Alumni

Get your taxes done using TurboTax

You should speak with the attorney. 

It seems like the former employer would have needed to issue a W2 with the withholding reported. 

Otherwise, you can enter the 1099-MISC as "Other Income" but you would also need to enter the taxes you paid. 

For entering the 1099-MISC:

Sign into your account and return. Click the “Pick up where I left off” bar

Click on Federal on the left side-bar, then Wages & Income along the top.

When you get to the Income section, Scroll down to Other Common Income and Click Show more

Click Start or Revisit for Form 1099-MISC

Enter a description for the non-work income, such as “Wage Settlement” for the reason and Continue

Click “None of these apply.” at the bottom of the list for “Does one of these uncommon situations apply? And Continue

Answer “No, it didn’t involve work like my main job.” on the next screen and Continue.

Click the year you got the reward and Continue (if you received this income for more than 2 years, the IRS will consider it as self-employment)

Answer “No, it didn’t involve an intent to earn money.” on the next screen and continue.

Do you have another 1099-MISC? Click No and Continue

Click Done.

The income will show as a line item on line 21 of Schedule 1 of the 1040 and not as Self-employment. 

To enter the withholding:

Click Federal 

Click Deductions & Credits

Scroll down to "Estimates and Other Taxes Paid" click Show more (Click Show all if necessary) 

Scroll down to "Income Taxes Paid" and click Start

Scroll down to "Other Income Taxes Paid in 2018" 

Click Start for "Withholding not already entered on a W-2 or 1099"

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