I received a W-2 for backwages and a 1099-MISC for the same lawsuit. For the TurboTax Desktop, I entered the W-2 (all boxes) and when I am trying to enter the information for the 1099-MISC, I have box 3 and box 10 with information. However, when TurboTax is asking how much is taxable attorney's fees, what amount do I enter? It seems that if I type in anything other than "0," it is requiring me to complete a Schedule C, even though I am not self-employed. Additionally, when answering the question "Was any part of the lawsuit settlement for back wages," if I answer yes, then it seems like I am getting taxed twice (1 time from entering the same amount from the W-2, as well as the yes answer from the 1099-MISC) - should I answer yes or no on this question?
Additionally, the 1099-MISC that was sent was just Copy B - keep for your records. However, upon reviewing everything, it looks like if I complete the 1099-MISC and enter the W-2 form that was sent with it, I am getting taxed twice - Box 1 from W-2 is included in 1040 line 1, as well as the box 3 from 1099-MISC is included in line 8 - is this right?
