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Cycleboss
Level 1

1099-Misc Main Job?

I retired in 2017.  In 2018, I was awarded back pay by my employer due to a grievance filed by my union.  If it matters, the award was for a pay raise employees eventually got in 2018 to settle a 2017 contract, but I had already retired, so a check with no withholdings was mailed to me.   As such, I received a 1099-Misc.  The questions in Turbo Tax related to this 1099-Misc want to know if it came from my employer and/or from my 'main job'.  I haven't worked for my 'employer' or at my 'main job' for nearly two years.  Do I treat these questions related to this one 1099-Misc as if I am still involved with my employer or 'main job' since it came from the 'main job' I retired from?  Or do I just say 'NO' it did not come from my 'main job' or employer since I'm no longer employed?

5 Replies
IsabellaG
Employee Tax Expert

1099-Misc Main Job?

When you enter your 1099-MISC, you will reach a screen Does one of these uncommon situations apply? Check that this was money from a lawsuit settlement. A drop-down will appear, "Was any part of the lawsuit settlement for back wages?" Check yes, and enter the amount of the settlement that was for back wages. Then proceed with the rest of your return.

 

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Cycleboss
Level 1

1099-Misc Main Job?

Thank you!!

timeforanewmac2
New Member

1099-Misc Main Job?

I also have a 1099-MISC for a back wage class action settlement, and I'm not at all self employed.

It looks like I'm getting taxed twice, as the amount is added to my income, a tax calculated from there, then below that another SE tax.

 

Is this right?

KrisD15
Employee Tax Expert

1099-Misc Main Job?

Delete the 1099-misc you entered and re-enter it as follows:

Click Federal

Click Wages & Income

Click “See All Income” if needed

Scroll down (PAST SELF-EMPLOYMENT) to “Other Common Income”

Click “Show more”

Scroll down to “Form 1099-MISC”

Click Start

Enter the 1099-MISC and Continue

On the “Describe the reason for this 1099-MISC” screen enter something like “back wages” and Continue

Select “None of these apply” and Continue

Select “No, it didn’t involve work like main job” and continue through the interview selecting the appropriate answers for the back wages

The amount from the 1099-MISC will be reported as Other income on the 1040 line 7a, not as Self-employment

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timeforanewmac2
New Member

1099-Misc Main Job?

Awesome, much appreciated!

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