Second W-2 or settlement award from lawsuit?

[IreneS · Accepted solution]

UPDATED FOR TAX YEAR 2019

To add another W-2 in TurboTax, please follow these steps:

1. Click on Federal Taxes > Wages & Income [In TT Self-Employed:  Personal > Personal Income > I'll choose what I work on].
2. Under Wages and Salaries, click on the Update box.
   
3. You will see the screen, Here's your W-2 info. 
4. Click on the Add a W-2 link.  If you are filing jointly, you will see an Add a W-2 link for you and your spouse.  Make sure you click the right one. 
   
5. Continue through the interview, entering the information on your additional W-2.

Legal settlements are reported as "Other Taxable Income."

You may or may not receive a 1099-MISC reporting the income. Regardless, this is how you should enter it in TurboTax:

1. Click on Federal Taxes > Wages & Income  [In TT Self-Employed:  Personal > Personal Income].
2. Scroll down to the Other Common Income section and click on the Start/Update box next to Income from Form 1099-MISC. 
3. If you previously entered a 1099-MISC. in your return, you will be brought to the 1099-MISC Summary page.  Click on the Add Another 1099-MISC. box to add a new form [or Edit to change an existing form].  
4. If you haven't already entered a 1099-MISC, answer Yes to the question Did you get a 1099-MISC? (even if you didn't get one).
5. On the Let's get the info from your 1099-MISC screen, complete the top part and then enter the award amount in Box 3 Other Income. 
6. Fill out any other boxes from your paper 1099-MISC (if you have one), then click Continue.
7. Enter a reason for the 1099-MISC. 
8. On the screen, Does one of these uncommon situations apply? select This was money from a lawsuit settlement  and then answer the back wages question before clicking Continue.  

If this information does not answer your question, please respond to this answer string with additional information.

[Edited | 4/3/2020 |  12:37pm PDT]