Deductions & credits
Do not override to enter attorney fees paid to settle unlawful discrimination. Enter the amount on the 1040/1040SR worksheet.
- Select Forms in upper right confer
- In the left column (Forms in My Return) tap 1040/1040SR Wks
- Find the Other Adustments to Income Smart Worksheet between lines 23 and 24 of Schedule 1 Part II.
- Enter your amount on line K: Attorney fees and court costs for actions involving unlawful discrimination.
- Tap Step-by-Step in the right corner where forms used to be to get back to the interview mode.
You may be able to deduct, as an adjustment to income on your Schedule 1 (Form 1040), attorney fees and court costs for actions settled or decided after October 22, 2004, involving a claim of unlawful discrimination, a claim against the U.S. Government, or a claim made under section 1862(b)(3)(A) of the Social Security Act.
However, the amount you can deduct on your Schedule 1 (Form 1040), is limited to the amount of the judgment or settlement you are including in income for the tax year.
