My husband got a 1099-Misc from Peloton for 2022 for California Penalty payments (I am assuming it was wait time penalties) because they did not pay anything on time... I know that it is not subject to withholding or employment taxes - and I am finding conflicting information on taxability or federal and state income taxes. I have it entered under the 1099-misc and answered the questions corrrectly, but I dont think it is taxing it based on the calculations. Can anyone help?
