I have a confusing scenario for my taxes, I received a 1099-NEC form from my CVS employer for the class action checks I received (California suitable seating lawsuit), I tried entering it into the 1099-NEC section, but it said missing info required
I looked this up and this seems like an issue with Turbotax and the advice was to enter it into the Schedule C, but this doesn't make sense to me, since this isn't self-employment income.
It asked for a business name and everything, I just typed in "1099-NEC" as the business, since I don't have a business, and then it wants to charge me 14% for the social security taxes for self-employment, but I am double confused since it's a settlement check
Please can someone help me, what am I supposed to do about this, do I just proceed with the self-employment , but it shows my name and business address and everything but I don't have a business!
I am upset too since my refund got cut by more than half after I inputted this as a "business".
I also saw this note on the letter:
"You received this form instead of Form W-2 because the payer did not consider you an employee and did not withhold income tax or social security and Medicare tax. If you believe you are an employee and cannot get the payer to correct this form, report this amount on the line for 'Wages, salaries, tips, etc.' of Form 1040....You must also complete Form 8919."
But I am an employee of CVS though, should I follow this advice and not file the 1099-NEC?
edit: I tried inputting it as "other income" and it even had an example as lawsuit settlement so this seems like the correct place, my refund jumped back and I am happier now, but will I get in trouble for doing this? It's not self-employment income nor wages so I don't want to pay that 14%
