I have a 1099 MISC with the money used for a discrimination settlement. This has wages, interest and dividends

[billychuck]

I don't inderstand why it includes wages, taxes, interest and dividends and where to find the correctt 1099 MISC to file?????

[DianeW777]

If all of the income from the discrimination settlement is included in the 1099-MISC, then file the income as 1099-MISC using the steps below.

• Discrimination settlements are generally taxable if they compensate for lost wages, emotional distress, or include punitive damages, and can include interest, usually reported as W-2 or 1099-MISC income. However, damages specifically for physical injury or physical sickness directly caused by the discrimination are typically tax-free.

It's important that you made the appropriate selections so that TurboTax does know that it was not self employment income.

1. Open your TurboTax Online/Mobile or TurboTax Desktop tax return
2. Search (upper right) > type 1099misc > click the Jump to... link
3. Begin your entry of the 1099-MISC.
4. It's important for you to select 'None of these apply" and then you should also select the following:
   1. 'No' on the screen 'Did the '____' involve work that's like your main job?'
   2. 'No' on the screen 'Did the '____'  involve an intent to earn money?' 

This will report the income without any business/self employment activity and it will show up on Form 1040, Line 8 (From Schedule 1, Line 8z).

• Continue to complete this section.

[billychuck]

I tried to expand the form, but box 1 is wages on my 1099 MISC and box 2 Federal Income tax withheld.  On the new 1099 MISC 1 and 2 are rents and royalties????  It similar to a standard W2, but the top indicates Form 1099 MISC????

[JamesG1]

Are you saying that the IRS form 1099-MISC has entries in multiple boxes?  Please clarify.

@billychuck