This is actually more complicated...
The Class Action Lawsuit itself WAS wages-related. I have received a settlement payment where 50% of the payment are wages (with taxes withheld) and the other 50% non-wage income for interest, liquidated damages and statutory and civil penalties. I got W2 for wages and 1099-MISC for the other income. 1099-MISC has the pro rata share of the attorneys' fees (in box 10). With all this additional information, what part of the attorney fees on 1099 is taxable to me (if any)?
Thank you so much!
