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gmbassoc
New Member

Wage Settlement with W2, 1099MISC, and 1099INT

A Wage Settlement payment resulted in three IRS forms: W2, 1099MISC, and 1099INT.  If the money from the lawsuit was divided unequally among these three forms, when entering the 1099MISC in TurboTax, should I answer the "Was any part of the lawsuit settlement for back wages?" as No, since that amount was already entered from the W2?

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1 Reply
DawnC
Employee Tax Expert

Wage Settlement with W2, 1099MISC, and 1099INT

That is correct.   If you enter an amount for back wages, TurboTax will move that amount to earned income and since you already have a W-2 to report the earned income portion, you should answer No to the back wages questions.   TurboTax will put the full amount on Line 8 of Form 1040.  

 

Only answer Yes to the back wages questions if a portion of the 1099-Misc amount represents back wages.  

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