Personal Taxes

Settlement in Lawsuit

My husband got a small settlement from a lawsuit (not his own, it was another employee at his company who filed against the company), and he got a photocopy of a W2 for it. (The amount on the W2 in the "Wages" box is less than what he won). My question is do we include it in BOTH federal and state tax returns, is there any special box on the forms it must go in, and do we include the photocopy of the W2 in with the return (he only has one copy for the Federal, does he need another one for the state)? Please answer this ASAP and send it to my email or text it. Thanks in advance! Yours truly, Denise Mayosky

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