I recently revisited my 2018 Federal Tax filing. I came back to it as a result of reviewing why my legal fees incurred as part of a successful settlement are not deemed to be tax deductible even though a 1/3 settlement check was cut directly to my attorney and was taken off my net settlement check.
I would assume that my attorney reported it as Business Income and subsequently paid income taxes on it.
Isn't that double taxation?
Legal fees used to be deductible as a miscellaneous itemized deduction.
Most of the miscellaneous itemized deductions were eliminated starting with 2018 returns.
So it is currently treated as a personal and nondeductible expense.
Our experts are available on-demand, no appointment needed. Get help all year long with TurboTax Expert Assist.
Enter your E-mail address. We'll send you an e-mail with instructions to reset your password.
©1997-2022 Intuit, Inc. All rights reserved.
Intuit,
QuickBooks, QB, TurboTax, ProConnect, and Mint are registered
trademarks
of Intuit Inc. Terms and conditions, features, support, pricing,
and service options
subject to change without notice.
Security
Certification of the TurboTax Online application has been
performed by
C-Level Security.
By accessing and using this page you
agree to the
Terms of Use.
Accessibility
