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I am planning to settle a civil lawsuit for unlawful discharge. Can I claim my attorney fees as an above the line deduction? If so, how do I do that on turbo tax?

 
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3 Replies
rjs
Level 15
Level 15

I am planning to settle a civil lawsuit for unlawful discharge. Can I claim my attorney fees as an above the line deduction? If so, how do I do that on turbo tax?

Duplicate question. Please post your question only once. Your question was answered in reply to your earlier post, at the link below. If you have a follow-up question, post a reply to the answer there.

 

You might have trouble posting a reply right now. There is a bug in the forum that is affecting the posting of replies, and apparently no one is working on it over the weekend. You might have to wait a day or two until the problem gets fixed.

 

https://ttlc.intuit.com/community/taxes/discussion/employment-lawsuit-settlement-question/01/830529

I am planning to settle a civil lawsuit for unlawful discharge. Can I claim my attorney fees as an above the line deduction? If so, how do I do that on turbo tax?

For 2018 only if it is a settlement for illegal discrimination.    TurboTax does not support this but it is possible to claim it using the forms mode in the CD/download desktop version.

 

Per IRS Pub 525

 

Discrimination suits. You may be able to deduct attorney fees and court costs paid to re-cover a judgment or settlement for a claim of unlawful discrimination under various provisions of federal, state, and local law listed in section 62(e), a claim against the U.S. Government, or a claim under section 1862(b)(3)(A) of the Social Security Act. You can claim this deduction as an adjustment to income on Schedule 1 (Form 1040), line 36.

 

 

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

I am planning to settle a civil lawsuit for unlawful discharge. Can I claim my attorney fees as an above the line deduction? If so, how do I do that on turbo tax?

Thank you.  So, it sounds like It would be in my best interest to have my former employer divide the payments to me and my attorney and send us separate W2's? Send me a W2 for my amount and one to my attorney for his amount (if my attorney agrees to pay his own taxes.)   

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