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

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 — Tue, 03 Feb 2026 12:28:40 GMT

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

Re: I received liquidated damages and backpay from my previous employer. The 1099-NEC that I rece...

KrisD15 — Sat, 08 Feb 2025 03:10:48 GMT

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

Are you self-employed or a contractor?

Re: I received liquidated damages and backpay from my previous employer. The 1099-NEC that I rece...

roscoemoedl — Sat, 08 Feb 2025 03:14:53 GMT

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

Re: I received liquidated damages and backpay from my previous employer. The 1099-NEC that I rece...

roscoemoedl — Sat, 08 Feb 2025 03:15:19 GMT

I'm not self-employed or a contractor

Re: I received liquidated damages and backpay from my previous employer. The 1099-NEC that I rece...

BrittanyS — Mon, 10 Feb 2025 16:53:45 GMT

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:

Sign in to TurboTax
Select Wages and Income
Select Other Common Income
Select 1099-NEC

For more information, see the link below:

1099-NEC

@roscoemoedl