In your case, you should answer NO. Since you received the W-2, you will enter that and that will satisfy the wage portion of the settlement. The non-wage portion of the settlement should not have self-employment (payroll tax) tax applied to it so you should not indicate that the 1099 settlement was for back wages. TurboTax will apply ordinary income tax to that amount but not any self-employment/payroll tax. @itsmy99
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