If the character of the award is compensatory in nature, the gross amount should be reportable and taxable as wages on a W-2.

Assuming your client will need to pay the $20k in attorney and court fees out of pocket and this is a suit for unlawful discrimination as defined under §62(e) (or certain other types of infringement), your client may be entitled to an above-the-line deduction under §62(a)(20).