Attorney Fees

Attorney fees are only deductible if the legal expenses are related to your business or your qualifying job. Attorney fees may also be deductible if paid to recover a judgement or settlement for a claim of unlawful discrimination.

Enter legal fees related to your business or rental property in the business income section.

Business-related legal expenses are entered in the Business Income (Schedule C) section.
Menu Path: Income > Business / Rental Income > Business Income (Schedule C)

Legal expenses related to your rental properties are entered in the Rental Income (Schedule E) section.
Menu Path: Income > Business / Rental Income > Rental Income (Schedule E)

If you qualify, enter legal fees related to your job on the Employee Business Expenses screen on the line that asks for "Other Expenses".
Menu Path: Deductions/Credits > Other Deductions/Credits > Employee Business Expenses

Attorney fees and court costs paid for unlawful discrimination cases may only be deductible up to the amount of the judgment or settlement you must include in income and are entered in the Miscellaneous Adjustments section.
Menu Path: Deductions/Credits > Other Deductions/Credits > Miscellaneous Adjustments