I received liquidated damages and backpay from my previous employer. The 1099-NEC that I received lists only the damages but not the backpay.

[roscoemoedl]

Box one has the damages - which I don't pay taxes on so it shows no federal withholding (box). But I did pay state and federal on the backpay. And neither the backpay or taxes paid show up on the 1099 so I don't know where to enter that

[KrisD15]

To clarify, are you sure it's on Form 1099-NEC and not 1099-MISC.

Are you self-employed or a contractor?

[roscoemoedl]

Yes its a 1099-NEC. It wasn't a lawsuit which is what entered in turbotax since it seemed most applicable; it was a settlement mandated by the department of labor

[roscoemoedl]

I'm not self-employed or a contractor

[BrittanyS]

If you received a 1099-NEC, the issuer of the 1099-NEC is treating you as a self-employed individual.  Per the IRS, "If payment for services you provided is listed on Form 1099-NEC, Nonemployee Compensation, the payer is treating you as a self-employed worker, also referred to as an independent contractor.

• You don't necessarily have to have a business for payments for your services to be reported on Form 1099-NEC. You may simply perform services as a nonemployee.
• The payer has determined that an employer-employee relationship doesn't exist in your case."

If you feel this is incorrect, you will need to contact the issuer of the 1099-NEC to have it correct.

You can enter this in TurboTax using the following steps:

1. Sign in to TurboTax
2. Select Wages and Income
3. Select Other Common Income
4. Select 1099-NEC

For more information, see the link below:

• 1099-NEC

@roscoemoedl