The income is all taxable on your 2024 return because it was received in 2024. Receiving the benefits in 2024 and reporting all on your 2024 return won't impact your prior year returns. Instead, the income you earned in the prior years will be used to determine how much of the benefits are included on your return in 2024.
You should list the amount in Box 5 which should be net of any deductible attorney's fees.
