You would enter under the 1099-MISC section. Here are the steps (online): Sign in to your account, select Pick up where you left offAt the right upper corner, in the search box, type in 1099misc and Enter Select Jump to 1099-miscEnter information on the 1099-misc screenNext screen, Describe the reason for this 1099-MISC, enter Lawsuit settlementNext screen, Does one of these uncommon situations apply? Check This was money from a lawsuit settlement, answer questions related to the back wagesWhen you check your return, this amount will be reported as wages on line 1 on the Form1040 and an offset amount shown on line 22 from 1099-misc on Schedule 1. [Edited 4/5/2020 | 6:25 PM]

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My wife received a 1099-MISC for a class action lawsuit w/ a previous employer for improper wages. How should I enter this as the Box labels don't match on TurboTax?

Forum|Forum|7 years ago
June 4, 2019
1 reply
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TurboTax Deluxe Online

Best answer by PopeyeTheSalior

You would enter under the 1099-MISC section. Here are the steps (online):

Sign in to your account, select Pick up where you left off
At the right upper corner, in the search box, type in 1099misc and Enter
Select Jump to 1099-misc
Enter information on the 1099-misc screen
Next screen, Describe the reason for this 1099-MISC, enter Lawsuit settlement
Next screen, Does one of these uncommon situations apply? Check This was money from a lawsuit settlement, answer questions related to the back wages

When you check your return, this amount will be reported as wages on line 1 on the Form1040 and an offset amount shown on line 22 from 1099-misc on Schedule 1.

[Edited 4/5/2020 | 6:25 PM]

PopeyeTheSaliorAnswer

Employee

You would enter under the 1099-MISC section. Here are the steps (online):

Sign in to your account, select Pick up where you left off
At the right upper corner, in the search box, type in 1099misc and Enter
Select Jump to 1099-misc
Enter information on the 1099-misc screen
Next screen, Describe the reason for this 1099-MISC, enter Lawsuit settlement
Next screen, Does one of these uncommon situations apply? Check This was money from a lawsuit settlement, answer questions related to the back wages

When you check your return, this amount will be reported as wages on line 1 on the Form1040 and an offset amount shown on line 22 from 1099-misc on Schedule 1.

[Edited 4/5/2020 | 6:25 PM]

A

ajkalinAuthor

That is what I wondered but it specifically says on that page "Do not enter income reported on Form 1099-MISC". What confuses me is the 1099-MISC we received is structured very similar to a W-2 with "Wages", "Federal Income Tax Withheld", "Social Security Wages", etc so I don't want to be taxed twice if federal tax was already withheld.