W-2 employees can’t deduct legal expenses even those relating to keeping their job. Although that class of expense is generally deductible, it was a miscellaneous itemized deduction subject to the 2% rule and that entire category of deductions was eliminated.
You talk about a discrimination lawsuit but you don’t actually say this was a lawsuit for workplace discrimination. That is the only kind of legal expense that is still deductible and it is a special so called above the line deduction. I can tell you how to make the adjustment if you are using the desktop version of TurboTax installed on your own computer, but I don’t know how to make the adjustment if you are filing online. There are some other folks who will know the answer to that.
