What Are Above-the-Line Deductions for 2020?
Officially TurboTax does not support the above-the-line deduction for attorney fees for an unlawful discrimination claim. It is listed in the Unsupported Calculations document. However, it can still be entered in forms mode in TurboTax for 2019.
Where do I Enter attorney fees on my 1040?
In forms mode open the “Form 1040 or Form 1040SR Worksheet” (1040/1040SR Wks). Scroll down to the Schedule 1 section (Additional Income and Adjustments), then to Part II Adjustments to Income, and then to the Other Adjustments to Income Smart Worksheet between lines 21 and 22. The attorney fees are entered on line H of the Smart Worksheet.
How are attorney’s fees included in gross income?
The Tax Court ruled that an award for an employment discrimination settlement should be included in a taxpayer’s gross income – but that he could deduct his attorney’s fees in the case above the line. Car salesman Abraham George received $45,000 during 2012 under a settlement for employment discrimination with his former employer.
