I'm having a similar problem. I was part of a class action suit regarding billing practices of a large hotel chain. I received $1,500 in resolution of the claim. This resolution basically paid me back the amount I was overbilled. I received a 1099-NEC from the hotel chain and entered everything that was on the form into TTx and keep getting the "Missing items" warning.
Based on this thread, I entered it as 1099-Misc and my tax liability jumped almost $600 in Federal alone. Additional on the state.
I'm having difficulty understanding how a corporation used improper billing procedures, paid me back essentially the same amount I overpaid, declared it a settlement and now I have to pay $600 in taxes on it. This doesn't seem right or just.
Should I be filing this differently?
