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Level 2
June 6, 2019
Solved

1099-MISC settlement and back wages

  • June 6, 2019
  • 2 replies
  • 36 views
I have a 1099-MISC for a lawsuit settlement, and the settlement also provided separately a W-2 covering the portion of the settlement that was for back wages. None of the income on the 1099-MISC represents back wages. When entering the 1099-MISC, I get a question, "was any part of the lawsuit settlement for back wages?". Is it correct that I should answer "no" to this question, since the 1099-MISC itself does not represent back wages even though part of the settlement was for back wages?
Best answer by DianeW777

No, it should not be combined with the W2 and you are correct to answer "no" that it was not part of back wages.

More information about how to enter your settlement is shown below.

https://ttlc.intuit.com/replies/3302162

2 replies

rationullAuthor
Level 2
June 6, 2019
When finalizing the Federal return, TurboTax also asked me to confirm a "back wages from lawsuit" box from the 1099-MISC. TurboTax said that a checkbox should be checked and asked me to confirm the amount. But in my situation that amount was reported on a W-2. Should I be including this as part of the 1099 somehow?
DianeW777Answer
Level 15
June 6, 2019

No, it should not be combined with the W2 and you are correct to answer "no" that it was not part of back wages.

More information about how to enter your settlement is shown below.

https://ttlc.intuit.com/replies/3302162

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