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Deductions & credits
Most attorney fees are not deductible, except for business purposes, since the tax law changes of 2017.
Did you receive a 1099-Misc to report taxable income on your return as a result of your lawsuit?
If so, click this link for more info on How to Enter a Legal Settlement.
Attorney fees are usually already subtracted from the settlement amount you received on a 1099-Misc.
What state are you in? Most states follow Federal guidelines.
Some legal fees can be deducted if you Itemize Deductions on your Federal return.
This link has detailed info on Deductible Legal Fees.
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‎February 22, 2022
11:07 AM