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, on page 30:
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 ofunlawful discrimination under various provisionsof federal, state, and local law listed in section62(e), a claim against the U.S. Government, ora claim under section 1862(b)(3)(A) of the Social Security Act. You can claim this deductionas an adjustment to income on Schedule 1(Form 1040), line 22. The following rules apply.
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