Carl
Level 15

Get your taxes done using TurboTax

. My settlement resulted in w2 form,

If that W-2 is for a prior tax year (2018 or before) then you will have to amend the tax return for that tax year. But I expect that since you were paid those back-wages in 2019, it would be a 2019 W-2. It's all 100% reportable as I'm sure you're aware, and there is no deduction from that income for legal fees at all.

 

and 2/3 in 1099misc that included lawyers cut plus my portion for emotional distress among a few other th iij NHS

I assume that last phrase was supposed to read "a few other things". With the TCJA (Tax Cuts & Job Act) of 2018 the laws on this have changed quite dramatically, and my above responses from more than 2 years ago just don't apply for the 2018-2019 tax year.  Bottom line is, your legal fees are not deductible on your personal tax return.

But you might want to review the IRS pubs listed below so see if they provide anything useful for your specific sitaution. I myself have not reviewed the below list for 2019 changes, and don't even know if they've been updated since the TCJA was enacted in 2018. So pay attention to the publication date or "updated on" date for each.