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Enter deductible legal fees on Line 8 of Schedule 1, Form 1040.  See page 94 of TAX YEAR 2020 1040 and 1040-SR INSTRUCTIONS for guidance on deductibility.

 

To enter the legal fees:   

  • Type "other reportable income" in the search window (or in the Search Topic window for desktop versions) 

  • Click on "jump to other reportable income"  (or "other reportable income" in the Search Topic results) 

  • Answer "No" to "Did you receive any other wages?" 

  • Select "Other reportable income" from the Miscellaneous income list 

  • Select Add another Income item  on the Other Miscellaneous Income Summary screen 

  • Enter a Description and amount (in negative numbers),  then click on Continue 

A corresponding negative amount will be entered on line 8 of Schedule 1 and Form 1040.