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Deductions & credits
This TT help reference may be useful to you:
Note that "business-related" means a business that reports on Schedule C, E, or F. (Exception: whistleblower and discrimination claims)
Also: you cannot deduct expenses incurred in 2020 on a 2021 return.
Non-business legal fees used to generally be deductible on Schedule A as a miscellaneous itemized deduction, but this was nixed by the 2017 tax reform law. Thus, successful litigants are now generally taxed on the gross settlement amount without reduction for attorney fees.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
‎July 28, 2021
2:07 PM