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Self Employment Tax on 1099 Misc (Lawsuit Settlement)
My wife and I are on full-time paid jobs. My wife received a W2 and a 1099-MISC and 1099-INT for a lawsuit settlement (for prior wages). Towards the end of State tax review, it gives an error asking for Business Code and after researching on TurboTax forums, it seems likely that the 1099-MISC details entered could be treated as Self-employment
However, the section where 1099-MISC was entered said if this is lawsuit settlement, then the system will not treat it for tax, so not sure where it is getting missed as the final paperwork is showing self-employment tax and asking for a business code
Please advise on how to fix/resolve this
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March 16, 2025
9:23 PM