Hired lawyer for work reason, Paid in 2016 and 2017 received a taxable settlement in 2018. Do I claim lawyer fees in 18 or do I need to amend the 16 & 17 tax returns?

[JulieR · Accepted solution]

If your legal fees were incurred to secure employment income, it is deductible.

To deduct the legal fees you paid in 2016 and 2017, you will need to amend your 2016 and 2017 returns. In those years the fees were deductible as Miscellaneous Itemized Deductions on Schedule A, subject to the 2% floor of Adjusted Gross Income.

For tax years 2018 through 2025, Miscellaneous Itemized Deductions have been suspended due to Tax Reform.