Thanks for your answer - This is not a business lawsuit and no deductions have been made for the case as I understand legal fees are not normally a deductible expense for an individual unless the case involves an injury which this does not. I have been paying the lawyer every month for the past 2 years. When the case is settled and if we have a favorable ruling which we expect, the defendant will need to deliver access to a fringe benefit they blocked me from. This is a no cost item to the defendant. I also expect that the judge is going to be harsh on the defendant because the defendant was less than honest and caused the issue which they could have resolved without going to court. We have asked the Judge to grant reimbursement for legal expenses and I expect the Judge will order the defendant to reimburse me for my legal expenses. I am not sure if the defendant, a major company, will issue a 1099-Misc or not. I wouldn't be surprised if they did just to cause more issues for me. There is a possibility that the defendant will try to settle before the trial as big companies do not do well in front of Jurys especially when it is easy to prove they are wrong. In that case they could offer some other type of settlement that could involve items that have a quantifiable value plus legal expenses. I would expect to pay taxed on the item other than legal fees if that actually happens.
