See this help article for instructions for entering a legal settlement in TurboTax. If only part of the settlement is taxable, enter the entire amount of the 1099 and then make a separate entry of a negative amount and name it "nontaxable portion of settlement".
Lawsuit settlements are usually reported to the claimant on a Form 1099-MISC unless they represent another type of income, such as wages.
Whether and how much of the amount of a legal settlement is taxable depends on the type of settlement proceeds you received and what they represented. Since you received a Form 1099, it should be accounted for on your tax return, as the IRS information return matching program will be looking for it.
In your case, based on the previous comments in this thread, the portion of the settlement that is not taxable is the amount that equals your lease payments. The rest is taxable.
See IRS Publication 4345 for more information about legal settlements.
Legal fees related to personal issues normally can't be deducted under current law (Tax Cuts and Jobs Act). See this tax tips article for more information and exceptions (business expenses, certain whistleblower and discrimination claims).
See this IRS article and IRS Publication 4345 for more information about the tax treatment of lawsuit settlements.
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