Hi All,
I received a 1099-NEC for independent contractor backpay awarded from a liquidating trust that handled the company's bankruptcy and closer.
1. First, would this be considered "money from a lawsuit settlement" and "back wages". I was a 1099 contractor, not a W-2 employee, so wasn't sure by the term Wages.
2. Second, in Personal Income > Other Common Income > Income from Form 1099-NEC, I enter the 1099-NEC I received, and choose "This money was from a lawsuit settlement" and choose Yes for "Was any part of the lawsuit settlement for back wages?" For the back wages amount, I enter the full total of the 1099-NEC I received. After entering this though, the amount is not included on Form 1040 Total Income, but I believe the amount should be taxed. Is this a bug? If I enter the amount as a 1099-MISC, the income is added to my Total Income just fine. Any thoughts are appreciated!
