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I received a taxable 1099-MISC settlement for unlawful discrimination. Can I claim legal fees above-the-line under IRC §62(e)(18) in TurboTax Online and how to enter?
I received a taxable settlement for an unlawful discrimination claim, reported on 1099-MISC Box 3, and paid attorney fees and court costs related to the case. I itemize deductions on my federal return.
Under IRC §62(e)(18), I understand that these attorney fees may be deductible above-the-line, even though employee legal fees are generally not deductible on Schedule A under TCJA (2018–2025). How can I claim this deduction in TurboTax Online, if possible?
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February 15, 2026
3:08 PM