I don’t believe the above answer is correct. The customer states that they received a W-2 and a 1099. The W-2 is for the portion of the settlement that represents wages. The 1099-MISC represents other monies that were paid as part of the settlement that were not wages. For example, this might represent punitive damages, interest on the money due over several years, and in this case, the employer paid the attorney‘s fee directly to the attorney. Unfortunately, the total settlement is taxable to the taxpayer, even including money that was paid directly to the attorney that the former employee never receives. There used to be a deduction for this type of attorney fee but it was eliminated in the 2018 tax reform law.
turboTax expert @WendyN2 appears to have the correct solution to how to enter this type of 1099.
https://ttlc.intuit.com/community/business-taxes/discussion/1099-misc-box-10/00/1863112
