You may be able to deduct attorney fees and court costs paid to recover a judgment or settlement for a claim of unlawful discrimination.
Per IRS Publication 525 Taxable and Nontaxable Income, page 29:
Deduction for costs involved in unlawful discrimination suits. You may be able to deduct attorney fees and court costs paid to recover a judgment or settlement for a claim of unlawful discrimination under various provisions of federal, state, and local law listed in Internal Revenue Code section 62(e), a claim against the United States government, or a claim under section 1862(b)(3)(A) of the Social Security Act. You can claim this deduction as an adjustment to income on Form 1040, line 36. The following rules apply:
To enter this information in to the TaxAct® program: