Filed claim for sexual harassment, wrongful termination that was settled out of court.  

Issued a W2 for compensation - no problem

Temp agency that she was working for issued a 1099MISC income in Box 3

Actual company she was working for issued 1099MISC income in Box 7

Company paid attorney fees, she didn't have to pay them out of her settlement, so no issues there.

What I'm reading (IRS lawsuits, awards, and settlements audit techniques guide) is that this is all taxable income, unless she suffered some kind of physical or emotional injury and the income was for medical care (therapy etc)...am I interpreting this correctly?

I cant imagine this being considered NEC income since she got the W2 for compensation, so I'm going to move over it to Other Income.

Am I missing anything that might make any of this potentially non-taxable?