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I'm so glad I came across your posts.  I also thought it did not make sense that even legal fees paid directly to attorneys are taxable to taxpayers who never received that amount.  And TT instructions clearly state legal fees for employment discrimination are deductible.  I tried to follow your instructions, and was able to deduct the fees.  Although the line # for 2025 for attorney fees is different from the time of your post , I was able to locate it after a bit of struggle.   It definitely is very concerning when "experts" dispense wrong instructions.     Thank you!  Hope others benefit from your post.

If the full FTC was not used in 2024, regardless of the amount, Form 1116 needs to be filed to be able to carry forward the unused FTC, so you need to amend. However, if the FTC was $300 or less ($600 on a joint return ) the full amount should have been allowed by not filling Form 1116. 

The correct tax accounting depends on how you handled the LLC inventory. If you threw it out, the ending inventory is $0. You get a deduction for the loss. If it was transferred to the sole proprietorship, for the LLC, you must indicate it was withdrawn for personal purposes. The ending inventory for the LLC would still be $0 but no loss. On the SP you list the same amount as a purchase.  Other scenarios are possible, but we would need details of what you did with the LLC inventory 

Regarding TurboTax is giving an error if the amount of real estate taxes reported on Form 8829 line 11b is greater than $40,000.00. The IRS is saying to enter the actual amount of real estate taxes paid on Form 8829, line 11b (indirect expenses). There is no maximum limit for the business portion of real estate taxes deducted on Form 8829, even though the personal portion is subject to the $40,000 SALT cap.  Seems TurboTax needs to fix their issue.  The work around of keeping it at 40K then entering the excess on the 'excess' line seems to work but technically is not correct. 

OOOH - I was on the phone with Intuit for over an hour and Turbo Tax definitely has a glitch. If you find your Form 8889-T and scroll all the way to the bottom, it appears that, in Part III, Line 18 Smart Worksheet, the "None" box for December is checked off, indicating Medicare was received. This happened on two different tax returns that I did! That box should not be auto-checked. Also, be sure that, if you don't have a spouse, form 8889-S is not in your form list. I needed to delete that for one of the returns. Hope this helps someone.

Thanks for the swift reply  @MaryK4  ! Since I am an "employer" due to my freelance business, does this mean the IRS consider me "covered by a retirement plan at work"? (note that my W-2 Employer does not offer a retirement plan)

You can tell the software that you do not have a W-2.   If an "old" employer transferred over from 2024, you can delete the employer.     Enter your retirement income:    Go to Federal> Wages & Income>>Retirement Plans and Social Security  (SSA1099 and 1099RRB) to enter your SSA1099.     To enter your retirement income, Go to  Federal> Wages and Income>Retirement Plans and Social Security>IRA  401 k) Pension Plan Withdrawals to enter your 1099R.  

I copied this from a another thread where I asked a similar but totally related questions and got my Fed. accepted today in just a few minutes. Still waiting for the State but i am sure I am in the right process now: (Again, the following worked perfectly for me)   Here is what I did (which is what you suggested):  1. Went to TT and in the upper right selected "Forms" 2. Found form 8889-T in the list and deleted it (it now has a red ! point next to it) 3. In the upper right selected "Step by Step" 4. Selected "PERSONAL" 5. Selected "Deductions & Credits" 6. Scrolled down and selected "Medical" 7. To the right selected "Visit All" 8. Select YES for Did you have any medical expenses in 2025 9. Check Box Health Savings Account (HSA) - then at the bottom "Continue" 10. The next few questions you have to navigate yourself with your situation 11. When you get to "What type of HDHP coverage did you have during 2025? - select "had  different plan types at different times of the year  (MY OPINION IS THIS IS WHERE THE TT BUG IS - I had been selecting the first option covered by family plan every month) 12. Select continue and the next page in a list of months 13. From the Health plans drop down select your plan for each (all 12 months) month 14. Select continue and get through the next few questions specific to your situation until your get back to the category header "Your 2025 Deductions & Credits" 15. Once you are there go directly to "FILE" and finish filing   Again, thank you to the TT Community!