Get your taxes done using TurboTax
Social security and Medicare tax is charged on earned income to go towards later benefits. This indicates that your settlement is taxable income and you are eligible to claim legal fees.
You will need to report your state and federal tax paid in the program. Enter any not reported on your form under Other Taxes Paid.
@ancat
Legal fees on the federal are an itemized deduction for taxable income. Your state may have different rules.
