Settlement from a Class Action suit

[exsocal8]

I received a settlement from a class action suit because I was paid too little when the company called its preferred stock.  Major stockholders received about $3 per share than others.  My settlement was principal amounts and pre-judgement interest.  I received a 199-INT for the interest but won't be receiving a 1099 for the principal.  Since it is an underpayment of stock that was called, do I input the amount as a capital gain or just as misc. income?

[MaryK4]

Since the settlement specifically awarded interest, you will have to add as interest income.  You would be able to put the additional income as capital gain.