I received a settlement check from a company for lost wages, and was given a 1099 for 2019. The check itself was for about $2.3k USD, and included a breakdown that didn't make sense to me and showed on the 1099 for ~$750 USD for the wages section. The actual check is for about ~$1900.
I've never received a settlement, but the total amounts here don't make sense to me. The lawyer's fee was taken out of the overall settlement, and it showed that taxes for federal/state etc. were removed, but the math doesn't really add up.
If the 1099 shows the $750 as wages, is my money already taxed? Is it just the amount of wages lost that was taxed and the rest is emotional damages (or whatever)? I wasn't a main plaintiff (class action), so I don't have a lawyer to relate to on this.
What sort of taxes should I look for on a lost wages and more on a settlement check?
My goal is to not owe next year (or owe more than I otherwise would have due to this).