Officially TurboTax does not support the above-the-line deduction for attorney fees for an unlawful discrimination claim. It is listed in the Unsupported Calculations document. However, it can still be entered in forms mode in TurboTax for 2019. Forms mode is available only in the CD/Download TurboTax software, not in TurboTax Online.
Here's how to enter the above-the-line deduction for attorney fees for an unlawful discrimination claim in TurboTax. In forms mode open the "Form 1040 or Form 1040SR Worksheet" (1040/1040SR Wks). Scroll down to the Schedule 1 section (Additional Income and Adjustments), then to Part II Adjustments to Income, and then to the Other Adjustments to Income Smart Worksheet between lines 21 and 22. The attorney fees are entered on line H of the Smart Worksheet. In the text entry box on the left side, right after the H, enter UDC. Enter the amount in the space on the right. The letters UDC and the amount will then appear on the dotted line to the left of the amount on line 22, and the fees will be added to any other amount that was already on line 22. The same notation, UDC and the amount, will appear on line 22 on Schedule 1.
Refer to IRS Publication 525 for important additional information about this deduction.
