Is there bodily injury, damage claim, discrimination claim? Is it back wages or compensation due to a wage claim? Are there punitive damage amounts? A claim of emotional distress or hostile workplace? Was this an insurance sales person? This matters if that is reportable in Box 3, Box 7, or W2. Details always matter.

"while payments for attorney’s fees are typically included in plaintiff’s gross income, they can often be deducted ‘above the line’ when calculating the plaintiff’s adjusted gross income. To qualify for an above the line deduction, the settlement of the claim should be made under one of the statutes listed under IRC § 62(e)."