I think the real question is....is this an award or is this actual wages for your job.
The federal tax code excludes from taxes a lawsuit award arising from physical injury or illness claims. The IRS doesn't collect tax on an award that compensates the plaintiff for medical expenses, lost wages, pain and suffering, and emotional distress suffered because of the physical injury or illness.
If the compensation was actually for work performed and not an award then it would be taxable and you would answer no to 'Was any part of the lawsuit settlement for back wages'.
Then the amount will show up as other income and taxable.
Check your 1040 in the forms mode to see if the income was added as 'Other Income'. It will be taxable income if entered here.
Other income is reported on line 8 of Schedule 1 of the 2020 Form 1040, then the total from line 9 of Schedule 1 is transferred to line 8 of the 1040 itself.
