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jordonr
Level 2

I have attorneys fees from a U.S. government back pay discrimination suite that I need to enter. IRS publication 525 says enter on 1040 line 36. How do I do that?

 
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Ashby
New Member

I have attorneys fees from a U.S. government back pay discrimination suite that I need to enter. IRS publication 525 says enter on 1040 line 36. How do I do that?

See below for instructions on how to enter your legal fees. Remember, you can only deduct in the year(s) you receive income from the suit. Also, this will put the amount in Line 21, but that is appropriate. There is no place for this in the section that contains Line 36 and I actually believe that might be a mistake in the publication

Yes, you still can deduct legal fees for unlawful discrimination claims in 2018.  However, remember that your deduction for legal fees in employment and qualifying whistleblower cases cannot exceed the income you receive from the lawsuit in the same tax year.

To enter your qualifying legal fees, 
  • In your open Federal return, choose the tab for Wages & Income
  • Scroll down to Less Common Income and Show more
  • Start/Revisit Miscellaneous Income and choose Other reportable income 
  • Say Yes to continue to the screen "Other Taxable Income". Enter the description "Qualifying Legal Fees" and the amount as a negative number

A corresponding subtraction will be entered on Line 21 of your return.

View solution in original post

1 Reply
Ashby
New Member

I have attorneys fees from a U.S. government back pay discrimination suite that I need to enter. IRS publication 525 says enter on 1040 line 36. How do I do that?

See below for instructions on how to enter your legal fees. Remember, you can only deduct in the year(s) you receive income from the suit. Also, this will put the amount in Line 21, but that is appropriate. There is no place for this in the section that contains Line 36 and I actually believe that might be a mistake in the publication

Yes, you still can deduct legal fees for unlawful discrimination claims in 2018.  However, remember that your deduction for legal fees in employment and qualifying whistleblower cases cannot exceed the income you receive from the lawsuit in the same tax year.

To enter your qualifying legal fees, 
  • In your open Federal return, choose the tab for Wages & Income
  • Scroll down to Less Common Income and Show more
  • Start/Revisit Miscellaneous Income and choose Other reportable income 
  • Say Yes to continue to the screen "Other Taxable Income". Enter the description "Qualifying Legal Fees" and the amount as a negative number

A corresponding subtraction will be entered on Line 21 of your return.

View solution in original post

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