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Other financial discussions
Attorney fees for employment discrimination must be entered on Schedule 1 line 22 and identified as "UDC".
This is not supported by TurboTax but can be done with direct form entry but only in the forms mode with the desktop versions.
To switch form TurboTax online to the Desktop/Download version see this TurboTax website: How do I switch from TurboTax Online to the TurboTax software?
That is a calculation the TurboTax does not support. See this TurboTax article:
19. Legal Fees for Unlawful Discrimination Lawsuits: This is not supported in TurboTax.
IRS form 1040 Schedule 1 line 22 instructions.
• Attorney fees and court costs for
actions involving certain unlawful discrimination
claims, but only to the extent
of gross income from such actions
(see Pub. 525). Identify as “UDC.”
Pub 525 page 30 says:
https://www.irs.gov/pub/irs-pdf/p525.pdf
discrimination suits. You may be able to de-duct attorney fees and court costs paid to re-cover a judgment or settlement for a claim of unlawful discrimination under various provisions of federal, state, and local law listed in section 62(e), a claim against the U.S. Government, or a claim under section 1862(b)(3)(A) of the Social Security Act. You can claim this deduction as an adjustment to income on Schedule 1 (Form 1040 or 1040-SR), line 22. The following rules apply.
•
The attorney fees and court costs may be paid by you or on your behalf in connection with the claim for unlawful discrimination, the claim against the U.S. Government, or the claim under section 1862(b)(3)(A) of the Social Security Act.
•
The deduction you're claiming can't be more than the amount of the judgment or settlement you're including in income for the tax year.
•
The judgment or settlement to which your attorney fees and court costs apply must occur after October 22, 2004.
This question was previously answered by macuser_22
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