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stuga
New Member

I received a W2 &1099-MISC for a class action settlement. For the 1099-MISC do I checkYES for back wages even if reported in a W2? If so, do I use the wages on the W2?

 
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1 Reply
DianeW
Expert Alumni

I received a W2 &1099-MISC for a class action settlement. For the 1099-MISC do I checkYES for back wages even if reported in a W2? If so, do I use the wages on the W2?

No, do not check back wages because you have the W2 for that portion.  

You can go directly to enter your lawsuit settlement using the steps here.

  1. Open (continue) your return in TurboTax.
  2. Type “1099-misc” in the Search box and then select the “Jump to” link.
  3. Answer Yes to the question Did you get a 1099-MISC?
  4. Fill out the boxes from your paper 1099-MISC and then click Continue.
  5. On the Does one of these uncommon situations apply? screen, select This was money from a lawsuit settlement and then answer the back wages question (no in your case) before clicking Continue. (image attached)

You can go directly to enter the legal fees, if applicable, using the steps here.

  1. Open (continue) your return in TurboTax (online or desktop).
  2. Select the Federal Taxes tab
  3. Select Deductions and Credits
  4. Scroll down to Other Deductions and Credits
  5. Select Legal Fees (image attached)

 Since personal attorney fees are a miscellaneous itemized deduction, they are limited by the two percent rule: They are deductible only if, and to the extent, they (along with all your other miscellaneous deductions, if any) exceed 2% of your adjusted gross income (AGI).

https://ttlc.intuit.com/replies/4787698

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