Yes, you can deduct legal fees. See how to enter at the bottom of the screen.
Legal fees related to doing or keeping your
job, see IRS Publication 529, Miscellaneous Deductions, page 5, https://www.irs.gov/pub/irs-pdf/p529.pdf . This deduction is subject to 2% of your Adjusted Gross Income. You can claim the amount of expenses that is
more than 2% of your adjusted gross income. You figure
your deduction on Schedule A by subtracting 2% of your
adjusted gross income from the total amount of these expenses.
Your adjusted gross income is the amount on
Form 1040, line 38, or Form 1040NR, line 37.
Legal Expenses for unlawful discrimination claims, see IRS Publication 529, Miscellaneous Deductions, page 10 https://www.irs.gov/pub/irs-pdf/p529.pdf . You may be able to
deduct, as an adjustment to income on Form 1040,
line 36, rather than as a miscellaneous
itemized deduction, attorney fees and court costs
for actions settled or decided after October 22, 2004, involving
a claim of unlawful discrimination, a claim against
the U.S. Government, or a claim made under section
1862(b)(3)(A) of the Social Security Act. However, the
amount you can deduct on Form 1040, line 36, or Form
1040NR, line 35, is limited to the amount of the judgment
or settlement you are including in income for the tax year.
See Publication 525 for more information.
To enter legal fees in the TurboTax CD/Download version:
- Enter Legal expenses, deduction in the Find/search box.
- Enter the appropriate questions.
