Yes, you can claim your legal expenses to the extent that your Social Security income is taxable. To claim them you must itemize your deductions and complete and file a Schedule A with your tax return.
This deduction is subject to the 2% AGI Limit. The 2% rule referred to the limitation on certain miscellaneous itemized deductions, which included things like unreimbursed job expenses, tax prep, investment, advisory fees, and safe deposit box rental.
To deduct legal expenses, you must have enough Itemized Deductions (ie. Medical, mortgage interest, property taxes, charitable giving, etc.) to exceed your Standard Deduction. The standard deduction amounts for 2023 are as follows:
Single; Married Filing Separately- $13,850
Married Filing Jointly & Surviving Spouses- $27,700
Head of Household- $20,800
