Where can I deduct the legal fees that I successfully recovered after taking legal action against a former employer?
My attorney helped me reach a settlement with a former employer in a discrimination and wrongful discharge action. The employer paid me and paid my legal fees and both payments w ere reflected on a 1099-MISC as my income. I'm certain I can deduct the legal fees, but just don't know where. I don't think it's done on Schedule A in this circumstance because it is not subject to the 2% limitation.