That depends on the facts, probably both. If you settled a lawsuit and were awarded back wages plus other damages (punitive damages, interest, other expenses) then you should receive a 1099 for the other income portion and a W-2 for the wage portion. Both are taxable. The 1099 may also represent money that was part of your settlement that was paid directly to your lawyers, that is still taxable income to you, as if you had received the money and then paid the lawyers separately.
If you received a 1099 and W-2 for the same income, we will need more information to understand the situation.
