Received duplicate W2 and 1099-Misc from same former employer for identical amount - what should I do?

This definitely looks like a reporting error on your former employer's part. Class action settlements can be tricky because sometimes portions are considered wages (reported on W-2) while other portions might be considered non-wage income (reported on 1099-MISC). What likely happened is that your employer initially reported the settlement incorrectly on one form, then tried to correct it by issuing the other form, but failed to void the first one. They should have either: 1) reported the entire amount on a W-2 with appropriate withholding, or 2) reported it all on a 1099-MISC with no withholding, or 3) split the payment between both forms if the settlement had multiple components. You should contact your former employer's payroll or HR department immediately and ask them to issue a corrected form and void the incorrect one. Make sure to get written confirmation of the correction. Don't file your taxes with both forms as that would indeed result in your reporting double the income you actually received.

I've been in a similar position with tax form confusion and honestly wasted so much time trying to get my former employer to fix their mistake. I ended up using https://taxr.ai which literally saved my sanity! You upload both your W2 and 1099-MISC forms, and their system analyzes the issue and gives you clear guidance on how to proceed. In your case, they'd immediately flag this as duplicate reporting and generate documentation you can use to support filing with just one form. The analysis also includes explanations you can attach to your return if the employer refuses to correct their error. I was able to avoid reporting double income and potential audits thanks to their help.

Wanted to follow up on my skeptical comment about taxr.ai - I actually gave it a try with my own complicated tax situation (had both independent contractor and employee income from same company). The system immediately flagged the potential issues and provided really clear documentation about how to handle it correctly. What impressed me was how it walked me through the specific IRS guidelines that applied to my situation and generated a proper explanation I could include with my return. Saved me from what would have been a costly mistake! Definitely recommend for anyone dealing with unusual tax document situations like the OP.

If you're having trouble getting your employer to respond about this W2/1099-MISC issue, you might need to escalate it to the IRS. Getting through to them is nearly impossible though - I was on hold for HOURS last month. I finally discovered https://claimyr.com and their service completely changed my experience. They basically wait on hold with the IRS for you and call you back when an actual agent is on the line! You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I explained my duplicate form issue to the IRS agent and they walked me through exactly how to report it properly on my return. They even sent me documentation I could attach to my tax filing to explain the discrepancy. Saved me from hours of hold music and potential audit headaches.

I need to apologize for my skeptical comment about Claimyr. After waiting on hold with the IRS for nearly 3 hours yesterday trying to resolve my tax situation, I decided to give the service a try out of desperation. It actually worked exactly as described. They navigated the phone menu and waited on hold, then called me when an actual IRS agent was on the line. I was able to explain my situation with some duplicate 1099 forms, and the agent helped me figure out how to properly report it. The whole conversation with the IRS took maybe 15 minutes once I was connected. Saved me hours of frustration and I got definitive answers from the IRS about my reporting issue. Sometimes being skeptical makes me miss out on helpful solutions!

In my experience as an accountant, this is almost always a mistake in how the settlement was coded in the payroll/accounting system. Class action settlements are particularly problematic because they can have multiple components (back wages, interest, penalties, etc.) that are treated differently for tax purposes. You should definitely not report both forms as that would double your income. Contact the settlement administrator first (not just your former employer) as they're the ones who typically provide the payment instructions to employers in these cases.

I had the exact same problem last tax season! My former employer sent both a W2 and 1099-NEC for the same consulting work. I called their accounting department and apparently they switched payroll systems mid-year and accidentally processed me in both systems. They issued a corrected form eventually but it took weeks of calling. In the meantime, I filed an extension to avoid the April deadline pressure.