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Where do I enter legal fees expended toward keeping my job?


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Where do I enter legal fees expended toward keeping my job?
You can usually deduct legal expenses that you incur while attempting to produce or collect taxable income or that you pay in connection with the determination, collection, or refund of any tax. Also you must remember that Legal Fees are an Itemized Deduction in Schedule A. This means that if the sum of deductions in Schedule A does not exceed the amount of your Standard Deduction these deductions will not be beneficial to your Tax Return.
You can also deduct legal expenses that are:
- Related to either doing or keeping your job, such as those you paid to defend yourself against criminal charges arising out of your trade or business,
- For tax advice related to a divorce if the bill specifies how much is for tax advice and it is determined in a reasonable way, or
- To collect taxable alimony.
To Enter you Legal Fees follow the instructions below:
- Log into your TurboTax Account and access your Tax return
- From the Welcome Screen in the Main Tab select Federal Taxes
- From the Secondary Tab select Deductions and Credits
- Scroll to the bottom of the Deductions and Credits list and find the Other Deductions and Credits Section and click on Show More
- A drop-down list will appear and from this list you will find Legal Fees click on Start and TurboTax will allow you to enter this amount for Schedule A.
TurboTax will make the comparison for you and let you know if an Itemized Deduction or a Standard Deduction benefits you the most. Additionally, for your information, I have included a Checklist of common Itemized Deductions to help you find as many deductions as possible therefore increasing the likelihood of exceeding the Standard Deduction and producing a better Return.
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