The W-2 is entered as normal in the W-2 section of your return. The Form 1099-MISC is entered as a legal settlement and answer, yes, it was for back wages. See the link below for detailed steps.
The full settlement is taxable and the attorney fees are not deductible. See the article below about deducting legal fees.
The law changed. Legal fees used to be a deduction under Miscellaneous Expenses when using itemized deductions and it was limited to the amount that exceeded 2% of adjusted gross income (AGI). Since the Tax Cuts and Jobs Act (TCJA) enactment this has been eliminated for tax years 2018-2025. It remains to be seen if it will automatically revert back in 2026. This may depend on what the legal fees are actually for.
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