I understand that the law changed a few years back & SSDI attorney fees cannot be deducted. However, someone posted (on multiple threads) about how to enter a negative dollar amount under Miscellaneous Income/Other Reportable Income. They didn't have any references to the legality of this, that I noticed.
Is this actually a thing? I have entered my lump sum attorney fees into the deductions section as instructed by TurboTax (knowing it isn't actually deductible right now). Is entering the thousands of dollars I paid in attorney fees to win my SSDI case as a negative amount in Other Reportable Income the right thing to do? I'm doubting it, but an "Expert Alumni" (whatever that means) says to do it, so I thought I'd just ask a fresh audience. Thank you!
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Per this excerpt from IRS Publication 529, the legal fees you mention would not be deductible in 2024 as they would be miscellaneous itemized deductions which are not currently allowed:
Furthermore, if they were allowed they would only be deductible as itemized deductions so the negative entry you suggest to income would not seem appropriate.
Thank you. That's what I was thinking, but I became confused because of those posts suggesting a negative entry was appropriate.
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