@iturman wrote:
Thank you for reply, but i don't think that's the answer. The lawsuit settlement organization sent a W-2 and a 1099 Misc. the 1099 Misc income was entered and appears as Misc Income.. The W-2 statement had all the proper taxes shown, Fed withholding, St withholding, Social Security and Medicare Withholding. The Fed and State withholding amounts are applied correctly. Its strictly the Earnings on the W-2 that appears as Self-employment income, why?
Settlement income is taxed according to how the money it replaces would have been taxed. You'll need to tell us more specifically about what the claims in the lawsuit were and why the settlement was split between a W-2 and a 1099.
