I received some money as part of a class action lawsuit settlement from a former employer. The amount was split equally into two separate forms - a W2 and a 1099-MISC.
When I filed my taxes, right after I clicked on the button to submit the taxes, the amount of refund reduced significantly. Afterwards I noticed that Turbotax added a self employment tax, even though I was not self employed. I believe I shouldn't have to pay self employment tax on the 1099 income.
So, I would like to file an amendment, but not sure how to fix this issue.
I have tried deleting the 1099 MISC and re-adding it twice, making sure it's under "other income". Each time, I selected "lawsuit settlement" for the reason for the 1099. I wasn't quite clear on the "back wages" question, because I believe the W2 covers the back wages and the 1099 does not, however the wording is whether the settlement includes back wages. In any case, I tried selecting "yes" the first time and "no" the second time but each time TurboTax is still adding the self employment tax. The 1099 only lists the amount I received in box 3 (other income) and the rest of the fields are either blanks or show $0.
I would appreciate any help! Thank you.
