Deducting unlawful discrimination legal fees in TaxAct
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If you've spent money on attorney fees or court costs related to a claim of unlawful discrimination, you may be able to claim a deduction for those expenses on the tax return that you file with TaxAct.

To use TaxAct to claim a deduction for fees related to an unlawful discrimination case:
  1. Consult the IRS's rules for using Form 525 to claim deductions of this type. If you meet the requirements, proceed to Step 2.
  2. Sign in to your TaxAct account, then click the My Tax Returns tile.
  3. In the left navigation menu, click Federal.
  4. In the Federal Quick Q&A Topics screen, click Other Adjustments > Other adjustments.
  5. On the Other Adjustments - Miscellaneous screen, scroll down to the Qualified attorney fees paid after 10/22/2004 for unlawful discrimination field, then enter the appropriate amount.
  6. Click Continue.