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Level 2
June 3, 2019
Solved

Legal fees for employer unpaid wages

  • June 3, 2019
  • 1 reply
  • 20 views

I brought a law suit against my employer for unpaid accured vacation pay in 2017. The case will not be settled until 2018. I have legal fees in both 2017 and 2018. I have not settlement from the emplyer yet. Can I deduct the legal fees in 2017 before the case is settled. If settled, can I deduct the 2017 legal fees in 2018?

Best answer by IsabellaG

Yes, legal fees to produce taxable income are deductible as miscellaneous expenses in the year that you pay them.

1 reply

IsabellaG
IsabellaGAnswer
Level 13
June 3, 2019

Yes, legal fees to produce taxable income are deductible as miscellaneous expenses in the year that you pay them.

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