There is no way around this that I can see. I will need to print out all the IRS forms and fill them out myself (grrrr...).
I didn't have a lawsuit settlement, but did pay substantial legal fees for a disability denial reversal. I have spent hours and hours and hours in TurboTax trying every conceivable alternative to get turbotax to consider the legal fees as a deduction. TurboTax flat out refuses to consider the valid deduction and does not even have the ability to ask me the right questions, such as whether the claim was under ERISA.
The deduction will make a huge difference in my taxable income. TurboTax is in error here because ERISA discrimination claims are not even considered in the TurboTax query when deciding whether to deduct legal fees and costs. I want my hours of wasted time back. grr...
The relevant internal revenue code is: 26 U.S. Code § 62. This lawyer does an awesome job explaining it all very clearly: https://disabilitydenials.com/disability-insurance-claims/can-you-deduct-attorney-fees-and-expenses-...
