@carmarshea63 wrote:
In doing my 2021 taxes using TT2021 Deluxe, I entered legal fees (job termination discrimination case), but the program dead ends there, not asking further what those fees related to, and not helping decipher their eligibility for deduction. What to do? It's as though entering the number for fees is a moot entry if TT isn't going to run it through a further flowchart and use that information. If it IS deductible, there's no way TT will help decipher that. Thoughts?
If this is an employment discrimination then legal fees are a "above the line" deduction that TurboTax does not support in the interview.
This deduction cannot be claimed using the online version. It is a situation not supported by the TurboTax interview.
It can only be entered in the forms mode in the CD/download desktop version directly on the 1040/ 1040SR Worksheet for Schedule 1 line 22.
in the smart worksheet line H enter the code UDC and the amount.
That will put it on the 1040 form line 10 as a deduction to income.
Per the IRS 1040 instructions page 97.
[quote]
Line 22
Include in the total on line 22 any of the following write-in adjustments. To find out if you can take the deduction, see the form or publication indicated. On the dotted line next to line 22, enter the amount of your deduction and identify it as indicated.
•Attorney fees and court costs for actions involving certain unlawful discrimination claims, but only to the ex-tent of gross income from such actions (see Pub. 525). Identify as “UDC.”
[end quote]
\https://www.irs.gov/pub/irs-pdf/i1040gi.pdf
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
