Question
Attorney Fees in a settlement
My client received a 1099-Misc with included attorney fees for a labor- wrongful termination/discrimination claim. The suit was settled out of court with the employer stating they do not admit to any wrongdoing or liability and, that the parties intend by their actions pursuant to the agreement to avoid the expense, delay, uncertainty and burden of litigation. My client received a W2, damages and attorney fees. The 1099 included the damages and attorney fees. How do I determine if the amounts paid to the attorney qualified for an above the line deduction? How do enter the 1099 attorney fees in the ProSeries.
