Thanks for your response.
the Law Suit settlement was for back unpaid wages and was part of a class action lawsuit.
the documents received were a W-2 and a 1099-Misc. The W-2 shows Gross Wages and all the applicable taxes that were withheld. The 1099-MISC amount is shown in Box 3. the Gross Wages and the Misc Income are 2 completely different amounts.
Turbo Tax is classifying the Wages amount as Income from Self Employment and generating form Schedule SE with the Gross Wages Amount from the W-2 shown on Line 2 "Net Profit from Schedule C and Schedule K-1", neither of which have been generated. The system then generates a Self Employment Tax Amount that is shown on Line 16 of the 1040.
How can it be both W-2 back Wages Income and Net Profit from Self employment??
