Lawsuit settlement from injury accident into TurboTax

@Opus 17 You mentioned two possible ways of handling this type of payment, but don't elaborate, are you able to in this forum?  The following is my particular situation.

I received a 1099-MISC from a former employer, the signed settlement with the federal agency involved states that the payment is to "fully and finally resolve and settle all claims between them arising out of all claims, complaints, and actions Complainant has or may have against the Agency, including, but not limited to, claims under Title VII of the Civil Rights Act, as amended, claims of emotional distress, or physical injuries that allegedly arose from emotional stress, and any other federal or state claim, including both civil and criminal claims."   It isn't clear in TurboTax as to how I need to handle this.  1st: Is it taxable income?  At the time of the settlement it was clear that the agency did not want to go further with my EEOC complaint which was scheduled to be heard by an Administrative Judge with the EEOC, the Agency offered a settlement in lieu of that, I accepted (not because it was a great monetary amount, ($10,250.00) but because I felt I had proven the point I was trying to make and this allowed me to move on (I retired as a result of the harassment and violation of my rights under the Americans with Disabilities Act, the suit was brought after my retirement date, this was NOT for any lost compensation (wages).  2nd:  If the settlement turns out to be taxable, I paid $3,280.00 for representation, am I responsible for tax on that portion of the $10,250.00 as well as the $6,970.00 residual?   Thank you for any assistance you can provide me, I've had a very difficult time trying to resolve this, I typically do my own taxes with TurboTax, however if need be I may have to resort to a paid tax service to help resolve this depending on your suggestions.  (It is understood that this is NOT legal tax advice