I know this question is over a year old but i have the same issue. Received payment for an OT settlement. Total was $2,348.44 but they sent a W-2 for $782.74 with taxes withheld and 1099-Misc for $1,565.70. Entering it as a lawsuit seems most appropriate but re-entering $782.74 as a portion of the wages double taxes them and the $1565.7 wasn't for wages. But I'm getting a prompt to complete schedule C.
