Question re: 1099-MISC and W-2 for Lawsuit Settlement

I received funds from a class action lawsuit against my current employer for unpaid overtime wages. Along with payment, I received both a W-2 and a 1099-MISC. The fund breakdown was as follows:

Gross Settlement Award $.......
2/3 Penalties, Interest, Non-Wages $.........
1/3 Wages $......
Total Taxes Withheld $.....
Net Settlement Award $........

The amount listed on the 1099-MISC is the amount that was listed as "2/3 Penalties, Interest, Non-Wages". I'm trying to find out if this amount is taxable? I was trying to work it into my tax return but TurboTax keeps looping me around. I was under the impression it didn't count as wages and shouldn't be taxable but perhaps I'm missing something? If it isn't considered wages, does anyone have any idea what I should be putting the funds in as? I selected lawsuit settlement but after that, I have no idea how to proceed.

Any advice or information would be appreciated. Thank you!


Penalties and interest received as a result of a lawsuit to recover taxable income (Wages) are included as income and subject to tax.
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