I have over $20,000 in attorney fees for 2019 on my SSA 1099 which are included in Box 3 & 5. My case took over 4 years to win my disability. However, my question is my attorney wasn't actually paid by the SSA until 2020 but the fees were included on my 2019 SSA 1099. I have a letter from the SSA stating such just over a month ago. I'm being hit with such large taxable amount of income already for 2019 & the attorney fees are included in the benefits paid. I wondered how I should report the attorney fees in Turbo Tax? Please advise.
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The tax laws that passed for 2018 and beyond eliminated legal fees as a deduction for your federal return.
I'm not sure you understand. The issue is that when you are trying to obtain SSA disability & you retain an attorney, the SSA pays the attorney a percentage of the back-pay settlement/award money. In my case, appeal after appeal, I was owed almost $100,000 from the SSA & the SSA paid my attorney approximately $20,000. The attorney fees were included on my 2019 Form 1099 however, the attorney fees were not paid until this year of 2020. I'm trying to figure out how to report this information correctly in Turbo Tax.
The SSA-1099 box 3 does not get entered anywhere on a tax return, only the box 5 and 6 amounts. As pointed out, the TCJA (Tax Cuts and Jobs Act) eliminated the attorney fees deduction for 2018-2015.
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