Last year I received a 1099-Misc from a court settlement. I received a W-2 at the same time representing my wages. But 100% of the funds shown on the 1099-Misc went to lawyer fees. How do I report this?
To deduct legal fees, you must itemize deductions on Schedule A, and the sum total of your miscellaneous deductions including your legal fees must exceed 2% of your Adjusted Gross Income.
Given the above limitations you may not be able to benefit from your legal expenses.
To enter legal fees:
Type in legal expenses, deduction the search box, top right of your screen, then click the magnifying glass
Click the jump to legal expenses, deduction link in the search results
Follow to prompts and online instructions
To report the income. type in lawsuit settlement in the search box and follow the above instructions.
To deduct legal fees, you must itemize deductions on Schedule A, and the sum total of your miscellaneous deductions including your legal fees must exceed 2% of your Adjusted Gross Income.
Given the above limitations you may not be able to benefit from your legal expenses.
To enter legal fees:
Type in legal expenses, deduction the search box, top right of your screen, then click the magnifying glass
Click the jump to legal expenses, deduction link in the search results
Follow to prompts and online instructions
To report the income. type in lawsuit settlement in the search box and follow the above instructions.
Would you please advise as to why you found the above answer unhelpful.?
My fault. I didn't word my question clearly. This was not money I received that I paid to lawyers. The 1099-Misc was reporting the lawyers fees AS income. I never saw a cent of it. A letter I got with the 1099-Misc said it was an above the line deduction not a Schedule A deduction. I resubmitted my question and got the answer I needed. Thank you for your quick response.
Glad you have your question resolved. If you would consider reversing your down vote, we would be grateful.