Report the full amount of the social security benefits for each year. Then if part of your social security benefits are taxed you can also deduct the attorney fees associated with producing this taxable income. The
fees can be used on itemized deductions.
First record your social security lump sum benefits by using the steps below.
You can go directly to the area to review your entry by following these steps.
1. Sign into your account and select your current return.
2. Select My Account on the top right and then select Tools
3. Select Topic Search (see attached image)
4. Search for ssa1099 and select Go (see attached images)
5. Follow the interview to enter or review your entry for these benefits.
Next, go directly to the are to enter your legal fees. These fees are allowed in the miscellaneous section of itemized deductions and are subject to 2% of your adjusted gross income (AGI). The total miscellaneous deductions that exceed that threshold will be combined with other deductions.
You can go directly to the area to review your entry by following these steps.
1. Sign into your account and select your current return.
2. Select My Account on the top right and then select Tools
3. Select Topic Search (see attached image)
4. Search for legal expenses and select Go (see attached images)
5. Follow the interview to enter or review your entry for these benefits.
A checklist of other itemized deductions is attached so you can take full advantage. TurboTax will use the information and optimize your return for the lowest tax.
