Be sure that the attorney has not already deducted his fee from your settlement. When this happened to me, that is how my attorney took his fees.
While he is techically correct, this deduction is no longer allowed since the tax reform in 2017.
Prior to the 2017 Act, an individual taxpayer who took itemized deductions instead of a standard deduction could deduct legal fees that were greater than 2% of his or her adjusted gross income as a miscellaneous expense.
