Delete the 1099-NEC that is asking you to create a business
Federal
Wages and Income
Income from 1099-NEC
Find the 1099-NEC and delete it by clicking the wastebasket and confirming the delete
You can use these steps to report your settlement from a lawsuit
- Federal
- Income from 1099-NEC
- Fill in info from the 1099-NEC
- Describe the reason for the 1099-NEC as Lawsuit Settlement
- Does one of these uncommon situations apply? check This was money from a lawsuit settlement
- Answer Yes Was any part of the lawsuit settlement for back wages?
- Enter the amount that was for back wages
The steps above will report the lawsuit 1099-NEC without adding any taxes.
If this money was for wages that should have been reported on a W-2 and you did not receive a W-2, then contact the company and request a W-2 for the amount of back wages and enter that W-2 into TuirboTax.
If you are not able to obtain a W-2, then you can enter the income as a substitute W-2, but you should only do that if all attempts to obtain a W-2 are unsuccessful.
To create substitute W-2
Federal
Wages and income
Wages and Salaries (W2)
Enter amount and then I type it in myself
Fill in information and continue to the screen Let's check for uncommon situations
Check Didn't get a W-2 (manually calculate my earnings)
Answer Yes to Let's check if you need a substitute W-2
By selecting Yes, you acknowledge the following statement:
I have been unable to obtain (or have received an incorrect) Form W-2, Wage and Tax Statement, from my employer. I have notified the Internal Revenue Service of this fact. The amounts shown on this statement are my best estimates of all wages or payments paid to me and federal taxes withheld by this employer during 2020.
OK, we'll start with a description of your efforts to get a W-2 - fill in the effort that you made to obtain the W-2
Describe how you determined your wages and the tax withholding without a W-2
Print a copy of the substitute W-2 to keep with your records
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