Legal Question in Employment Law in Tennessee
I received W2 ($15K) from my former employer and 1099NEC ($1,500) for money I was paid as part of NDA. My friend told me it should have been only a W2. NDA says neither I nor family or anyone else on my behalf will sue them for monies owed etc. it was part of NDA due to owed wages and termination when I reported new manager for unpaid wages and toxic work environment due to SH. They refuse to correct it and not sure how do I report when I file my taxes. Thank you
1 Answer from Attorneys
Initially, it appears as if this is payment for a settlement of some claim you had against this employer. If that is the case and no taxes were withheld, this normally gets reported on a 1099. The difficult part comes in if the claim you had against the employer was only for unpaid wages. If that was the case, then it likely had to be W-2 income. Ultimately, the answer depends on the nature of your claim and the language of the settlement document. In addition to this posting, I would also consult a tax professional. Most labor and employment lawyers, myself included, do not have a sufficient grounding in tax law to provide meaningful tax advice.