Taxable legal settlements (including those from employment discrimination suits) are entered under Income from 1099-MISC, even if you didn't receive Form 1099-MISC.
See these instructions:
https://ttlc.intuit.com/replies/3302162
You can usually deduct legal expenses that you incur in
attempting to produce or
collect taxable income or that
you pay in connection with the determination, collection,
or refund of any tax.
Legal Fees are included on
Schedule A as a
Miscellaneous Itemized Deduction, subject to a 2% limitation based on your Adjusted Gross Income. (TurboTax will make this determination for you.)
Search on "legal expenses, deduction" and click the "jump to" link to go directly to the start of this topic.
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