Question

In 2020 I won a discrimination case against the Fedl Govt for discrimination. I received a settlement of $10K I had legal fees of $15 K. Howdo I deduct fees in Turbo Tax?

Forum|Forum|5 years ago
February 18, 2021
1 reply
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I go into deductions after legal fees and it says that the legal fees didn't affect your state or Federal return which is not true.

TurboTax Self Employed Online

macuser_22

Employee

If this is an employment discrimination then legal fees are a "above the line" deduction that TurboTax does not support in the interview but can be entered in the forms mode in the CD/download desktop version directly on the 1040/1040SW Worksheet for Schedule 1 line 22 in the smart worksheet line H with the code UDC per the IRS 1040 instructions page 94.

That will put it on the 1040 form line 10 as a deduction to income.

This deduction cannot be claimed using the online version.

\https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**