How do I book an above the line deduction for attorneys fees incurred in connection with an employment discrimination lawsuit

[CarolynM · Accepted solution]

As my colleague Kitty said so well, here is how to report attorney's fees for employment discrimination lawsuits:

You still can deduct legal fees for unlawful discrimination claims in 2018.  However, remember that your deduction for legal fees in employment and qualifying whistleblower cases cannot exceed the income you receive from the lawsuit in the same tax year.

To enter your qualifying legal fees, 

• In your open Federal return, choose the tab for Wages & Income
• Scroll down to Less Common Income and Show more
• Start/Revisit Miscellaneous Income and choose Other reportable income 
• Say Yes to continue to the screen "Other Taxable Income". Enter the description "Qualifying Legal Fees" and the amount as a negative number. 

A corresponding subtraction will be entered on Line 21 of your return.

Source: How to Enter Legal Fees for 2018 Tax Returns

[j10l05m55]

Thank you. Never would have found that on my own.