@jc238 wrote:
I found this article "12 Ways to Deduct Legal Fees Under New Tax Laws" by Robert W. Wood and it appears that certain legal expenses within section 62(e)(18) may be deductible.
The author points out in the new tax code there is a "catchall provision" that makes a deduction for legal fees available for claims alleged under: any provision of federal, state or local law, or common law claims permitted under federal, state or local law, that provides for the enforcement of civil rights, or regulates any aspect of the employment relationship, including claims for wages, compensation, or benefits, or prohibiting the discharge of an employee, discrimination against an employee, or any other form of retaliation or reprisal against an employee for asserting rights or taking other actions permitted by law.
In conclusion under the new tax code, some job related legal fees may be deductible.
For 2019-2025 the only legal fees that are deductible for an employee are for a unlawful discrimination lawsuit. Which is what section 62(e)(18) refers to.
See IRS Pub 529 page 11
https://www.irs.gov/pub/irs-pdf/p529.pdf
That is an "above the line" deduction not supported by TurboTax but can be entered in the forms mode on the desktop products.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
