It depends on the type of settlement you received. See this for instructions on how to enter the income that you may have received.
Do I need to claim a settlement received from pain and suffering?
There are different categories of payments for personal injury cases.
For personal physical injuries or sickness OR emotional distress or mental anguish, it depends on how you took the original medical expenses off of your taxes.
If you took the standard deduction, then payments are NOT taxable.
If you itemized the original medical expenses, then the original deduction must be recaptured on line 21, Form 1040, Other Income.
Legal settlements that are taxable (including previously-deducted medical expenses related to physical injury or illness) are entered as miscellaneous (other) income.
If you receive a 1099-MISC, follow these steps to report the income:
Open (continue) your return in TurboTax.
Type “1099-misc” in the Search box and then select the “Jump to” link.
Answer Yes to the question Did you get a 1099-MISC?
Fill out the boxes from your paper 1099-MISC and then click Continue.
On the Does one of these uncommon situations apply? screen, select This was money from a lawsuit settlement and then answer the back wages question before clicking Continue.
If you didn’t receive a 1099-MISC, follow these steps to report the income:
Open (continue) your return in TurboTax.
Type “lawsuit settlement” in the Search box and then select the “Jump to” link.
Answer Yes to the question Any Other Taxable Income?
Enter a brief description and the amount you received and click Continue.
Interest earned on settlements is taxable income and should be entered as a Form 1099-INT.
