Qualifying Legal Fees

Forum|Forum|3 years ago
April 1, 2023
2 replies
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I have qualified legal fees to report. I am supposed to report it on line 24z. I'm concerned if I put it on Other Miscellaneous Income Summary as a negative amount, it will not be accepted by the IRS. Please assist me with this issue.

TurboTax Self Employed Online

Best answer by Anonymous_

Unfortunately, you have no choice with TurboTax as Line 24z has not yet been implemented.

Anonymous_Answer

Employee

Unfortunately, you have no choice with TurboTax as Line 24z has not yet been implemented.

tcblanke-Author

Does TurboTax feel that this will put people using this work-around at risk for an audit?

ErnieS0

Most legal fees are no longer deductible for your federal return. The deductible fees are shown on Form 1040, Schedule 1, lines 24h and 24i. If you have those types, enter the amounts on those lines instead of 24z.

You will need TurboTax CD/Download to enter amounts in those lines.

See How do I switch from TurboTax Online to TurboTax CD/Download?

Once you've installed CD/Download:

Select Forms in upper right corner
In the left column (Forms in My Return) tap 1040/1040SR Wks
Find the Other Adjustments to Income Smart Worksheet between lines 23 and 24 of Schedule 1 Part II.
Enter your amount

You can enter other legal fees in Deductions & Credits. They will transfer to your state return, if applicable.

Tap Deductions & Credits in the left column
Go to Other Deductions and Credits and Show more
Tap Start next to Legal Fees

Learn more at “Can I Deduct Legal Fees on My Taxes?”

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

tcblanke-Author

I do have qualifying legal fees for collecting alimony in arrears (divorce prior to 2018). When I click on

Legal fees in Deductions & Credits I see this message:

"You're not required to report these fees on either your federal or state returns, but you can enter them if you'd like to keep track of your expenses." -- Which does not deduct them from my Federal Due amount.

If I download the CD version to gain access to the forms, can I transfer my work from the online version? I haven't paid for the online version yet. I would hate to have to start all over with my taxes.

Anonymous_

Employee

@tcblanke- wrote:
If I download the CD version to gain access to the forms, can I transfer my work from the online version?

Yes.

See https://ttlc.intuit.com/turbotax-support/en-us/help-article/intuit-product-orders/switch-turbotax-online-turbotax-cd-download/L8oxEJNu5_US_en_US

Note: Line 24z is not implemented in TurboTax, as stated in the initial response in this thread. As a result, switching to a desktop version will have no impact; Line 24z can neither be enabled in Forms Mode nor will an override be accepted for that particular line.