Get your taxes done using TurboTax

without getting into the debate whether it's legal or not, here is how to do it in TT.

 

First, there are no longer any legal fees that are permitted 'below the line', meaning they can not be placed on Schedule A.

 

However if you read the instructions to form 1040 very closely (see link below), they are to be placed on Line 36 of Schedule 1.  Look at the section in the link that states: (WBF is 'whistle blower fees;) 

 

  • Attorney fees and court costs for actions involving certain unlawful discrimination claims, but only to the extent of gross income from such actions (see Pub. 525). Identify as "UDC."

  • Attorney fees and court costs you paid in connection with an award from the IRS for information you provided that helped the IRS detect tax law violations, up to the amount of the award includible in your gross income. Identify as "WBF."

 

https://www.irs.gov/instructions/i1040gi#idm[phone number removed]928

 

pull up TT in Forms View, and then search for Schedule 1 and go to Line 36. 

 

It won't let you put the fee directly on this line, but if you click the search button on the left corner of the box another screen will open and on line H of the Income Smart Screen there is a free form box where you can type in  'WBF - Whistle Blower Legal Fees"  and then the dollar amount. 

 

TT should reduce your gross income by this amount (so called 'above the line')....then while it's really hard to see what is occurring, look at Line 7 of Form 1040, it should go down by the amount of the legal fees. 

 

I can't see how to do it using 'step x step' method.  

View solution in original post