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I received a 1099-NEC from past employer from a settlement that was paid out. I’m not self employed so how do I enter this

 
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1 Reply
ColeenD3
Expert Alumni

I received a 1099-NEC from past employer from a settlement that was paid out. I’m not self employed so how do I enter this

Please see this answer from DianeW777.

 

You can use these steps to report your settlement from the lawsuit. These steps will report the lawsuit 1099-NEC without adding any taxes.

  1. Federal
  2. Income from 1099-NEC
  3. Fill in info from the 1099-NEC
  4. Describe the reason for the 1099-NEC as Lawsuit Settlement
  5. Does one of these uncommon situations apply? check This was money from a lawsuit settlement
  6. Answer Yes Was any part of the lawsuit settlement for back wages?
  7. Enter the amount that was for back wages

 

 

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