There is apparently no provision within the TurboTax software to deduct, as an adjustment to income on Form 1040, line 36, rather than as a miscellaneous itemized deduction, attorney fees and court costs associated with unlawful discrimination claims. Any attempt to make a dedicated line item 36 change utilizing the "forms" feature results in errors and an inability to file electronically.
However, there is a workaround to enter the data and successfully e-file. Enter the attorney fees using Section H of the "Other Adjustments To Income Smart Worksheet" in the forms selection and the software will subsequently complete the Line 36 entry. Identify the Section H entry as, "UDC" and/or "Expenses 1099 Miscellaneous".
