The award for legal fees is taxable income.
The employment portion of your settlement included the tax portion and was reported on a Form W2 including these taxes.
The 2017 Tax Cuts and Jobs Act eliminated the ability to deduct legal fees on Schedule A.
You should revisit the Personal Income section where you entered this Form 1099-MISC.
Verify the amount is entered in Box 3.
On the next screen enter Lawsuit settlement as the description of the payment.
On the next screen verify This was money from a lawsuit settlement is selected from the list.
Verify that you have answered the question Was any part of this settlement for back wages: No.
This settlement is in reference to the payment and the dollars included on the Form 1099-MISC not the overall lawsuit.
Answering this way should remove the errors you are receiving from the review.
