SusanY1
Expert Alumni

Deductions & credits

 

Please read carefully and be sure that you are using 2020 documents when doing any research. 

 

The 2020 Publication 529, page 9 indicates that this is a Schedule A deduction, NOT, an above-the-line deduction.

 

However, if the suit is against the federal government or a claim under section 1862(b)(3)(A) of the Social Security Act, then it is an above the line deduction - this exception is found in Pub 525, page 32.

 

Page 94 of the 2020 instructions for Form 1040 is the worksheet for an IRA Deduction, and has nothing to do with this topic. 

 

The general above-the-line deduction for these fees is for lawsuits that were before 2018.  In 2020, the deduction is part of itemized deductions on Schedule A, per the instructions in the 2020 Publication 529, on page 9 (other than for the exceptions described above).

 

The attorney that assisted you with the case should know if yours falls into the social security act category.  

 

@banditthetaxdog

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