It depends. When entering Box 10 for Gross Attorney's Fees, a drop down appears for the Taxable Portion.
Regarding the Taxable Portion: Enter the portion of the payment you received that is considered your fees on the appropriate line. This amount will transfer to the Schedule C self-employed business that you designate.
When Form 1099-MISC is marked as not back wages, it will be reported as Other Income not subject to self-employment tax.
The lawsuit settlement will otherwise appear on Schedule 1, Line 8 as Other Income from Box 3 of 1099-Misc.
For more information regarding reporting back pay, see: About Publication 957, Reporting Back Pay and Special Wage Payments to the Social Security Administr....
