LEGAL EXPENSES PAID AS PART OF A EMPLOYMENT SETTLEMENT

[johndmcgovern6160]

I recently revisited my 2018 Federal Tax filing. I came back to it as a result of reviewing why my legal fees incurred as part of a  successful settlement are not deemed to be tax deductible even though a 1/3 settlement check was cut directly to my attorney and was taken off my net settlement check.

I would assume that my attorney reported it as Business Income and subsequently paid income taxes on it. 

Isn't that double taxation?  

[RobertG · Accepted solution]

Legal fees used to be deductible as a miscellaneous itemized deduction.

Most of the miscellaneous itemized deductions were eliminated starting with 2018 returns. 

So it is currently treated as a personal and nondeductible expense.