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W2 + 1099-NEC from employer after NDA settlement - Should this all be W2?

I got paid two different ways from my former employer - a W2 and a 1099-NEC. The 1099 was for an NDA settlement related to wage issues. My friend says the whole thing should be on a W2. Anyone dealt with this before? Need to know if I should try to get this corrected before filing.

Amara Nnamani

Tax professional here - Your friend is correct. Settlement payments for wage-related claims should be reported on Form W-2, not 1099-NEC. This includes settlements for unpaid wages, overtime, or wage-related disputes. The employer is trying to avoid paying their share of employment taxes. You should contact them to request a corrected W2.

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Liam Fitzgerald

omg thank you! What happens if they refuse to fix it? 😩

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2M

Amara Nnamani

File Form SS-8 with the IRS to determine the correct classification. Also Form 8919 to report the uncollected taxes

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Giovanni Mancini

im in the same boat! company tried to 1099 my severance 🤡

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NebulaNinja

Hey I used taxr.ai to analyze my transcript for a similar situation. It helped me understand exactly what forms to file and timeframes. Its only $4.99 and saved me hours of research. The AI walks you through everything! https://taxr.ai

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Fatima Al-Suwaidi

interesting - does it actually help with misclassified income issues?

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NebulaNinja

YES! It identified the misclassification immediately and gave me step-by-step instructions for filing Form SS-8 and 8919. Even generated a letter template for my employer!

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Fatima Al-Suwaidi

just tried it - absolutely worth every penny! 💯 The AI even caught some deductions I would have missed

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Dylan Mitchell

they did u dirty fr fr... classic move trying to dodge them taxes 🙄

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Sofia Morales

Document EVERYTHING. Keep copies of the NDA, all communications, and payment records. Trust me on this one.

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Liam Fitzgerald

already on it! got screenshots and everything backed up

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Dmitry Popov

This happened to my cousin last year - took 3 months but they finally fixed it after he threatened to report them to the labor board

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Ava Garcia

Get yourself a labor attorney ASAP! Most do free consultations

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StarSailor}

second this! worth every penny to get professional help

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