topic Where do I enter Class Action Law Settlement where Federal, social security, medicare, state taken out? in Get your taxes done using TurboTax

Where do I enter Class Action Law Settlement where Federal, social security, medicare, state taken out?

zz26 — Tue, 10 Feb 2026 11:17:05 GMT

Where do I enter Class Action Law Settlement where Federal, social security, medicare, state taken was already taken out? The % taken out is low (i.e 9.8% Federal, 6.2% SS, 1.45% medicare). I was also paid this in VA when I moved to NY, so the state tax went to VA? I already capped on SS so might need to get a refund on that portion but need to adjust state and tax. Don't know what to do or where to enter this information on Turbo Tax online. Thanks.

Re: Where do I enter Class Action Law Settlement where Federal, social security, medicare, state ...

KrisD15 — Mon, 19 Feb 2024 15:50:50 GMT

To clarify, did you get a tax form reporting this income such as a 1099-MISC or W-2?

Re: Where do I enter Class Action Law Settlement where Federal, social security, medicare, state ...

zz26 — Mon, 19 Feb 2024 16:29:26 GMT

They did not send me any tax form at all and they said they won’t. They sent me a letter with the check and it listed out gross wages (fed income tax, ss tax, Medicare tax, state income tax, sdi/sui, local,) and the final net settlement payment.

Re: Where do I enter Class Action Law Settlement where Federal, social security, medicare, state ...

DianeW777 — Mon, 19 Feb 2024 16:43:11 GMT

This will need to be entered using the regular W-2 entry screen as though you actually received one. If you do not have the employer name or EIN, then you will complete a substitute W-2, using the instructions below. A substitute W-2 requires you to mail your tax return. By entering the information TurboTax will automatically know you have excess social security tax and carry it to the appropriate place to be included with your other withholdings. (Schedule 3, Part II, line 11 which will flow to the 1040, Page 2, line 31)

You can file a conventional paper return that includes IRS Form 4852 if you haven't been able to get a W-2 from your employer. Here's how to fill one out:

Open or continue your return and search for W-2. Select the Jump to link in the search results to go to the W-2 entry screen.
Fill out your W-2 using the information from your last pay stub.
Answer any questions until you get to Let's check for uncommon situations.
Check the box next to Didn't get a W-2 and select Continue.
On the Let's check if you need a substitute W-2 screen, select Yes then Continue.
Answer the follow-up questions. Select Print to download and print your IRS Form 4852.

As far as the state taxes, since you received the money after you moved to New York (NY), then all of this income should be taxed to NY. Enter zero wages in the W-2 for Virginia (VA), but enter the withholding. Enter total wages for NY, with zero withholding. This should allow a full refund from VA and the income taxed to NY. You will file part year resident for each state.

@zz26

Re: Where do I enter Class Action Law Settlement where Federal, social security, medicare, state ...

zz26 — Mon, 19 Feb 2024 21:33:15 GMT

Thank you. Is there a reason why this would need to be submitted as a w2 when it is a class action law settlement?

Re: Where do I enter Class Action Law Settlement where Federal, social security, medicare, state ...

ThomasM125 — Fri, 23 Feb 2024 16:00:34 GMT

Its needs to be entered as a W-2 form because you had Social Security and Medicare tax withheld. The only way to report those type of tax withholding is on a W-2 form. Also, since those taxes were withheld who ever withheld them should have paid them in to the IRS and reported that on a payroll tax return 941 or 945, issued you a W-2 form and reported that to the IRS on a W-3 form.