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36cimona55
Returning Member

Received a 1099-Misc for a Settlement for back wages

Thank you again and I apologize for the added confusion. It's actually Box 3 for "Other Income", I just accidentally pressed the 6 key and didn't proofread the message well enough before sending. Doesn't help that the form is very tiny to begin with and I'm using a magnifying glass to read it. That aside, everything else I've stated still stands along with my growing frustration until I can continue this after work tomorrow, hopefully. I appreciate your help and patience with the process however.

JohnB5677
Expert Alumni

Received a 1099-Misc for a Settlement for back wages

@Opus17 gave you good advice a couple of posts back.  I would make one modification. 

Clear out any 1099-MISC entries you have for this transaction.

 

The Internal Revenue Service (IRS) and Social Security consider back pay awards to be wages.  So that income is taxed differently.

 

You stated that It does mention that "25% of individual settlement amounts are for unpaid wages" but nothing more.

  1. Start at Wages & Income
  2. Scroll down to Other Common Income
  3. Select Form 1099-MISC
  4. Post the entire form exactly as it is.
  5. Describe the reason for this 1099-MISC = Back Wages & Other
  6. Does one of these uncommon situations apply? 
  7. Select This was money from a lawsuit settlement
  8. A drop-down will appear - Was any part of this lawsuit for back wages? = Yes
  9. Enter the amount as 25% of total

 

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