turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

I received 1099MISC for settlement, along with a W2 - the amounts differ

I received 1099MISC for a settlement, a portion of the settlement was unpaid wages. I also received a W2 for the upaid wages which were taxed before I received the final amount and this is indicated on the W2. The amount on the 1099MISC is different from the amount on the W2 due to the rest of the settlement not pertaining to wages. How do I correctly enter these forms?

When adding the 1099MISC, one of the questions asks if the the settlement is unpaid wages. 

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
MarilynG1
Employee Tax Expert

I received 1099MISC for settlement, along with a W2 - the amounts differ

Yes, enter both forms as they are reported. The W-2 represents payment for back wages. 

 

The 1099-MISC probably contains taxable income from proceeds that were punitive in some form.

 

When entering the 1099-MISC, indicate that the form was received from a lawsuit and the amount (if any) that represent back wages.  You won't be taxed twice on the wages.

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies