Where to deduct legal fees paid for workplace discrimination settlement?

[Ryan7]

Hello, I entered my legal fees paid in the "legal expenses" section, however, it is stating that "While your legal fees didn't affect your federal or state return...".  Upon investigation, as the legal fees are due to a workplace discrimination settlement, I believe they are deductible and should affect my returns.  No question within TurboTax online was asked other than the amount of fees paid, and no questions were asked about the type of fees to determine if they are deductible or not.

[KittyM · Accepted solution]

You will need to enter your legal fees as a negative adjustment in Other Income.  To do this in TurboTax,

• In your Federal return, choose the tab for Wages & Income
• Scroll down to Less Common Income (you may have to click Add more income and See more income to view this topic) and Show more
• Start/Revisit Miscellaneous Income and choose Other reportable income 
• Say Yes to continue to the screen Other Taxable Income. Enter your item description and the amount as a negative number.