Cannot find category for personal income tax under "other deductions" to deduct amount for legal fees incurred while recovering wages as a result of a severance.

In TurboTax Online, you would have to go to Employment Expenses, and then say YES to having a T2200 (even if you don't). Then on the next page select "Other Employment Expenses", and say NO to the GST/HST rebate. Then on the next page, at the very top, you can enter your legal fees.