Yes, it will be taxed. One thing I want to clear up about the legal fees as well. After 2017, with the enactment of the Tax Cuts and Jobs Act (TCJA), there are not miscellaneous deductions available in the category for legal fees. There will be no deduction for those fees for 2020.
@JeffreyR77 is providing the correct information about the Form 1099-MISC income. "The 1099-MISC reported amount is the amount attributable to the attorney fees amounts and other settlement fees. These should not be arbitrarily subtracted out - they do not represent the same settlement as the W-2 amounts even if the dollar amounts may be the same." (The link is referring to another tax year.)
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