I have a 1099 misc for getting a refund on legal fees. I paid my bill and had a issue with the legal firm. They credited their services and refunded me 18,000 of what I previously paid. I entered the 18000 as income, which shows on Sch 1, part 1 on line z. How do I get it to show on part 2 on line z to zero this transaction. Or is there a better way of doing this? Thank you for your help/
Make a negating entry the same way you just did the first entry ... this time call it "refund of fees paid" and put a minus sign in front of the amount.
The income will be reported on Schedule 1 line 8 with the description that you entered.
Since you have Home & Business, you have the ability to use Forms Mode.
Enter Forms Mode, open your Other Income Statement and add an offsetting transaction (description and figure - see first screenshot).
Your Schedule 1 should then appear (roughly) similar to the second screenshot.