Yes, you still can deduct legal fees for unlawful discrimination claims in 2018. However, remember that your deduction for legal fees in employment and qualifying whistleblower cases cannot exceed the income you receive from the lawsuit in the same tax year.
To enter your qualifying legal fees,
- In your open Federal
return,
choose the tab for Wages & Income
- Scroll down to Less
Common Income and Show more
-
Start/Revisit Miscellaneous Income and
choose Other reportable income
- Say Yes to continue to the screen "Other
Taxable Income". Enter the description "Qualifying Legal Fees" and the amount as a negative number.
A
corresponding subtraction will be entered on Line 21 of your return.
