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
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    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 RECIEVED A SETTLEMENT IN A CLASS ACTION SUIT. WAS THIS AN AWARD?
          
          NOT UNDERSTANDING YOU
    • 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?
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    It was a settlement from Countrywide for mortgage suit brought by government
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      Settlement was against California Culinary Academy which I graduated from,for false advertising to students
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        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
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        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.
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          settlement was against burger king  for wheel chair accessability
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            "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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