I received a lawsuit settlement. With it I also received 3 IRS forms. W2, 1099-MISC, and 1099-INT. Do I enter all 3 or just 1? Only the W-2 reflects taxes withheld.

[jebusfriend]

The W-2 shows federal, social security, Medicare, and state taxes withheld but the 1099 forms both have nothing in box 4 for federal income tax withheld.

[DanO · Accepted solution]

You will enter all three forms.

Here is how to enter in TurboTax Deluxe Online:

Sign in to TurboTax

Click on Take me to my return and then follow these steps for the three forms

For the W-2 entry

• Click on Federal on left column
• Scroll down to Wages and Salaries click and click on Start button

For 1099-MISC

• Click on Federal in left column
• Scroll down to Less Common Income and click
• Click on Miscellaneous Income, 1099-A, 1099-C Start button
• Scroll down to Other reportable income and click Start button
• Click Yes 

For 1099-INT

• Click on Federal in left column
• Scroll down to Interest and Dividends and click
• Click the Interest on 1099-INT Start button
• Click Yes and then I'll type it in myself 
• Then follow instructions

[Schiekapedia]

How is it legal for the IRS to tax the same income twice? It's either wages or it's interest. Based on how much I've been taxed on mine, I might as well have just had the settlement fund sign the check over to the mafiosos at the IRS and save everybody the time and head/heartache.