This was lawsuit settlement..employment was back in 2014 and lawsuit was settled in 2017 so received w2 and same amount as 1099-misc (non employee compensation checked) ...
1099-misc was not only for penalties but was also for liquidated damages...which means it included attorney fees...so I understand penalties are taxable income but what about liquidated damages? if it should not consider taxable than how do I adjust that amount in freedom edition?
so now when I am using freedom edition...it shows she needs to refund some of tax credit she received under obamacare... because of this income in 2017.
not only that...employer did not withdraw any federal income tax (employer did withdraw $240 for state income tax) so now the total amount is more than 1300$ ..
Is there any way to avoid reporting this income in 2017 ...and report it in 2014 when real employment was there?
