How do I claim attorney fees as a deduction? The attorney fees were the result of unlawful discrimination against a former employer. The fee was 50% of the 1099 award.

[jhutchins8295]

The settlement was provided in three payments. One portion was W-2, the other 2 were 1099 -  half of which went to me and the other half went to the attorney. The 1099 has me listed as receiving both halves. How do I claim the attorneys fee as a deduction on TurboTax?

[JillS56]

There are different types of 1099s.  I am going to assume you received a 1099-MISC with an amount in Box 3 (other income).   If so you will not be able to deduct the attorney fees.

Here is more information on the deductible of  Legal Fees.  

[Carl]

FYI, but fees for unlawful discrimination claims are deductible. See IRS Pub 529 at https://www.irs.gov/pub/irs-pdf/p529.pdf page 9 of that document.

[mmaza]

Enter above-the-line deduction for attorney's fees reported on 1099-MISC by entering a separate 1099-MISC reporting other reportable income with the amount of attorney's fees only listed as a negative number. For description, enter deductible attorney's fees.

This means for this income, you will have two 1099-MISCs entered into TurboTax. One reporting exact same information as reported to you on the 1099-MISC, and a second one reporting the deductible attorney's fees as a negative number. 

Do not enter them in a second time under deductions and credits, as this can cause them to be deducted from your state tax return twice.

[Opus 17]

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@mmaza wrote:

Enter above-the-line deduction for attorney's fees reported on 1099-MISC by entering a separate 1099-MISC reporting other reportable income with the amount of attorney's fees only listed as a negative number. For description, enter deductible attorney's fees.

This means for this income, you will have two 1099-MISCs entered into TurboTax. One reporting exact same information as reported to you on the 1099-MISC, and a second one reporting the deductible attorney's fees as a negative number. 

Do not enter them in a second time under deductions and credits, as this can cause them to be deducted from your state tax return twice.

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Incorrect.  This method will result in a smaller entry on schedule 1 line 8z (other income).  The correct place to list UDC attorney costs is as an adjustment to income on line 24h of schedule 1. To do this in Turbotax, you must use the desktop version installed on your own computer, and use Forms mode to make a manual entry on line 24h.  UDC attorney fees can't be deducted using Turbotax online. (Although, if you upgrade to Live Online for additional cost, your live CPA assistant may be able to enter them for you.)  To DIY you must use the desktop version.