I have been on unemployment for about a month after being laid off from my job in Ohio. Recently, my lawyer received two checks from my former employer as part of a discrimination settlement. One check is for "Compensatory Damages" and falls under a 1099-MISC box 3, while the other is a W-2 payment that doesn't specify its purpose, just stating that I wouldn't have received it without the settlement agreement. I'm trying to figure out if I need to claim the W-2 check as income for my unemployment benefits, since it isn't clearly labeled as wages. I've received some advice that the 1099 is for punitive damages and not deductible, but I'm still unsure about the W-2. I wonder if there are any allocation dates for the W-2 payment, as that could affect how it's treated for unemployment purposes.