Question

IRS Pub 529:You can deduct legal expenses that are related to doing or keeping your job...Where do I enter those deductions?

Forum|Forum|3 years ago
April 3, 2023
1 reply
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Since the IRS publication explicitly states you can deduct legal fees where you hired a lawyer in order to keep your job, where in the tax forms do you input that deduction. I tried entering the fees on the "Employment Expenses -- Job-Related Expenses" and it made absolutely zero difference in my taxes due. So... where must I input that expense (legal fees) in order for it to have an effect?

TurboTax Online

Employee

Qualified legal fees are no longer deducted on Sch A but on sch 1. You will report it as negative income rather than a deduction.

To enter your qualifying legal fees from an employment discrimination suit in TurboTax Online,

Go to Wages & Income
Scroll down to Less Common Income,
Next to Miscellaneous Income,
Select Other reportable income
Description "Qualifying Legal Fees," and
Enter the amount as a negative number.

The deduction will appear as an “above the line” deduction and will be deducted from your gross income.

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FrankWilliamsAuthor

Thank you. This was very helpful. It made a difference.