To claim these legal costs in TurboTax, you can make a negative adjustment on Schedule 1. Go to Wages & Income Less Common Income Select Miscellaneous Income, 1099-A, 1099-C Select Other Reportable Income Any Other Taxable Income? Select, yes. On the Other Taxable Income page: enter description: “Deductible Attorney Fees”Amount: enter in the adjustment amount as a negative number.This adjustment will appear on Schedule 1 Line 8z (reducing Total Income) and is included on the amount on Form 1040 Line 9.

TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Community

rubyskies

Question

How do add and entry to Schedule 1, Other Adjustments to Income Smart Worksheet, item K: "Attorney fees and court costs for actions involving unlawful discrimination"?

Forum|Forum|1 year ago
January 31, 2025
1 reply
0 views

No text available

PatriciaV

Employee

To claim these legal costs in TurboTax, you can make a negative adjustment on Schedule 1.

Go to Wages & Income
Less Common Income
Select Miscellaneous Income, 1099-A, 1099-C
Select Other Reportable Income
Any Other Taxable Income? Select, yes.
On the Other Taxable Income page: enter description: “Deductible Attorney Fees”
Amount: enter in the adjustment amount as a negative number.

This adjustment will appear on Schedule 1 Line 8z (reducing Total Income) and is included on the amount on Form 1040 Line 9.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

rubyskiesAuthor

Thank you for your response. Shouldn't this item be on Schedule 1, under "Attorney fees and court costs for actions involving unlawful discrimination", between 23 and 24 (Other Adjustments to Income Smart Worksheet) instead of Schedule1, 8z, "Other income. List type and amount"?
I am specifically looking for the entry point to get my attorney fees for an unlawful discrimination case deducted and based on the line description above, it seems like it should go there instead of the generic "Other income" where it landed. Please advise, and thank you in advance for your help with this. As an additional note, I am using the browser version of the app.

PatriciaV

Employee

You are correct that these fees would typically appear on Line 24h. The entry provided earlier is the method used in TurboTax, which has been approved by the IRS.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"