I recieved a settlement in a class action law suit

I  recieved a settlement in a class action law suit would that be considered prize or reward
    It would be considered wages.  If handled correctly it would be shown on your Form W-2.
    • I also received a Wal-Mart class action distribution payment.  On the information page of the check, mine stated that in early 2011, I would recieve a W-2. Actually the tax information is already on the information page of the check.  I have not worked at Wal-Mart for at least 7 years.
    • i got the same settlement from oulette vs walmart but the tax form they sent me was a 1099-misc not a w2 should i enter it in w2 anyways?
    It was a settlement from Countrywide for mortgage suit brought by government
      Settlement was against California Culinary Academy which I graduated from,for false advertising to students
        It depends - what was the lawsuit for?
        • against walmart for loss wages due to them saying they would clock you in.  For managers going ahead and adjusting your hours without your knowledge
        If the amount received is in Block 3, I would enter it as a Form 1099.  If it's in Block 7, I would include it as wages as block 7 is for self-employment income - which it is not.
          settlement was against burger king  for wheel chair accessability
            "settlement was against burger king for wheel chair accessability"

            It would be reported as miscellaneous / other income under the wages and income tab.
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