How to I report "above the line" deductions from a 1099-Misc reported income from a class action employment lawsuit settlement?

Forum|Forum|7 years ago
June 7, 2019
1 reply
29 views

Recently, as part of a class action employment lawsuit, I received a 1099-Misc form reporting lawyer fees as income. These are supposed to be "above the line" deductions (see codes 62(A)(20) and 62(E)). How do I deduct these from my income?

Best answer by PatriciaV

The legal fees associated with Unlawful Discrimination Claims must be entered directly on the "Other Adjustments to Income Smart Worksheet" Line H.

To do this, you must use a TurboTax CD/Download Product (any version). This entry cannot be made in TurboTax Online. See this post for more help: How do I switch from TurboTax Online to the TurboTax software?

Open your return in TurboTax for desktop. Click the "Forms" icon in the header (or go to Forms in the menu bar).

Once in Forms Mode, click on Form 1040 in the left column. Scroll down to Line 36. Immediately above, on the Smart Worksheet, enter "UDC" on Line H and the amount of your attorney fees (see screenshot below - click to enlarge). This entry is "above the line" for your Adjusted Gross Income.

PatriciaVAnswer

Level 15

The legal fees associated with Unlawful Discrimination Claims must be entered directly on the "Other Adjustments to Income Smart Worksheet" Line H.

To do this, you must use a TurboTax CD/Download Product (any version). This entry cannot be made in TurboTax Online. See this post for more help: How do I switch from TurboTax Online to the TurboTax software?

Open your return in TurboTax for desktop. Click the "Forms" icon in the header (or go to Forms in the menu bar).

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"