I have a lawsuit against my former employer for back wages that are owed to me on my contract - Can I deduct those fees? and if yes on what form?

 
IreneS
Intuit Alumni

Get your taxes done using TurboTax

No - In tax years before 2018, the legal fees related to producing or collecting taxable income or getting tax advice were deductible as Miscellaneous Deductions Subject to the 2% AGI Limit.

This deduction has been eliminated for tax years 2018-2025.  You can still enter the fees in TurboTax since they may be deductible on your state return.

Please follow these steps:

  1. On the Deductions & Credits screen, scroll down to Other Deductions and Credits.
  2. Click the Start/Revisit box next to Legal Fees.
  3. On the next screen, click the Enter my expenses box and enter the fees on the next screen.


**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"