I have 2 questions. My wife received a discrimination employment settlement and received $40,000 in lost wages, etc. which was just entered as normal income on her W2. This amount was taxable. The amount was not separated from her normal income. Do I need to report that exact amount anywhere because it said in some tax law that the write-off of attorney fees need to be less than the settlement? She also received $60,000 for waiver of claims against employer due to pain and suffering, which we did not receive a 1099 for because we were told that income was not taxable. We are trying to write off the attorney fees ($34,750) because they told us that was possible. Where do we enter all this information into Turbo Tax Deluxe (We have CD download version). Thanks.
