Stugotz
New Member

Can I deduct legal fees paid to secure a lump sum Social Security payout? Its considered taxable income.

I spent $6000 in Legal Fees to Secure Social Security Disability. I received a Lump sum an SSA-1099. Since I am being taxed on the Lump Sum as income, Can I deduct the Legal fees since the law reads as follows?  Legal fees are generally not deductible. The two exceptions are for legal fees incurred to determine or collect any tax liability, and legal fees expended to secure taxable income.