The settlement was paid in Jan 2023. They sent a 2023 W-2(with Fed, state, SS and medicare withholding) for part of the settlement and a 2023 1099-MISC for the rest of the settlement. At the end I owed taxes and IRS took the amount without question. The State however owed me a refund and sent me a notice that they have no record of the state withholding shown in this W-2 and gave me a refund minus the amount that was withheld in this W-2.
