You can deduct on Schedule 1 (Form 1040), line 36 At this time; however, there is no interview support for this in TurboTax and there are no plans to add it. Here is workaround: If you are using TurboTax Destop:
- Go to Forms mode.
- Under Forms in My Return, click on 1040 Wks
- Scroll down to "Schedule 1 Additional Income and Adjustments"
-
Click on one of the blank lines on line 21 and type "Qualifying Legal Fees from box 3 of Form 1099"
- Enter you legal fees as a negative number
If you are using TurboTax Online:
- Log in to your account and go to your return
- Click on Federal
- Wages & Income
- I'll choose what I work on
-
scroll to Less Common Income
- select Start (or Update) for Miscellaneous Income
- Select "Other Reportable Income"
- Enter a description and the amount of legal fees (as a negative number).
