I won a discrimination lawsuit against a former employer in 2020. A portion of their payment to me was reported on my W2. Another portion was reported on a 1099 NEC. When I entered the 1099 NEC in Deluxe, it asked me if the entry was for payment of a lawsuit for back wages. I entered yes but the system then prompted me to complete a Schedule C with all kinds of business information. I don't own a business. I read on the back of the NEC form that if I felt the sum should have been included as W2 income that I should enter it there. Not sure what I should do. I certainly don't want this to become an issue with the IRS.
