You'll need to sign in or create an account to connect with an expert.
That depends on the facts, probably both. If you settled a lawsuit and were awarded back wages plus other damages (punitive damages, interest, other expenses) then you should receive a 1099 for the other income portion and a W-2 for the wage portion. Both are taxable. The 1099 may also represent money that was part of your settlement that was paid directly to your lawyers, that is still taxable income to you, as if you had received the money and then paid the lawyers separately.
If you received a 1099 and W-2 for the same income, we will need more information to understand the situation.
You'll need to file both the W-2 and the 1099-MISC form.
To enter your W-2, see How do I import or enter my W-2?
If your 1099-MISC has an amount in Box 3, enter it as follows:
To enter a 1099-MISC in TurboTax:
Tax settlements may be taxable but it depends upon the type of settlement. The settlement type will be listed in your Final Settlement Agreement. For additional information see Are legal settlements taxable?
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
rosariodasal7
New Member
ebondfrancisco
New Member
cher52
Level 2
cher52
Level 2
cher52
Level 2