I received a 1099-MISC AND a W-2 for a settlement. Wage portion on the W-2, 1099 is for damages and attorney fees. Do I omit the wages when entering the 1099?

Trollrx · ‎June 4, 2019

I don't want to be taxed twice on the wage portion since I already entered it from the W-2, but when entering the 1099-MISC (which includes only the damages and attorney fees) Turbotax asks if any of the following apply:

"This money is from a lawsuit settlement". Yes.

Then: "Was any part of the lawsuit for back wages?" Yes.

I am then required to enter the wage portion a second time, even though its not listed or a part of the 1099?

Opus 17 · ‎June 4, 2019

Since the 1099 does not contain the wage portion of the settlement, answer "no" to the back wages question. Otherwise you will be taxed a second time. (It is less common to receive a W-2 and an 1099 even though that is the way it should always be done.)

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

View solution in original post

Opus 17 · ‎June 4, 2019

Since the 1099 does not contain the wage portion of the settlement, answer "no" to the back wages question. Otherwise you will be taxed a second time. (It is less common to receive a W-2 and an 1099 even though that is the way it should always be done.)

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

I received a 1099-MISC AND a W-2 for a settlement. Wage portion on the W-2, 1099 is for damages and attorney fees. Do I omit the wages when entering the 1099?