Received 1099Misc issued from Mortgage company settlement - $5000. Can above the line deduction method be used to deduct $1000 attorney fees? Don't have enough to itemize

 
ToddL
New Member

Get your taxes done using TurboTax

Yes, you can adjust (reduce) the 1099-MISC income for attorney's fees without itemizing.

To enter the legal fees:

  • Go to Less Common Income, Miscellaneous Income and Other reportable income (enter "other reportable income" in the Search Box and Select "Jump to other reportable income")
  • Continue to the screen "Other Taxable Income". Enter the description as "Attorney Fees - 1099-MISC Settlement" and the amount as a negative number. These are NOT wages.