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SSDI legal fees counted as income

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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2 Replies
ThomasM125
Employee Tax Expert

SSDI legal fees counted as income

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. 

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SSDI legal fees counted as income

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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