What is the name of your state (only U.S. law)? Florida
I am in the process of negotiating a wrongful termination settlement (we have not filed yet) as cover under the whistleblower act. The settlement from the employer/defendant has deemed that the payment is to be for back wages and that a W-2 will be issued to include tax withholdings. I am perfectly ok with having to pay taxes, however I am concernced that the unemployment office will receive the W-2 and consider this as earned wages and then ask for the unemployment benefits I have received back. From my research (I THINK) if I was to be able to receive this as "other income" (Form 1099-MISC box 3 or 7) then this would not affect my unemployment claim. Is there a way I can get them to cut a check so that it isn't reported on a W-2? This settlement isn't all that much, and if I have to return my unemployment I am not any better financially after paying the lawyer and returning my benefits.
Again, I'm not trying to get out of taxes, I just don't want it to count against my unemployment.
I have 1 day to respond, so your fast replies are greatly appreciated.