Can I deduct legal fees incurred trying to postpone my retirement date? (I had never filed retirement papers )

[MichelleT · Accepted solution]

Yes, you can deduct legal fees.

Our very knowledgable TurboTax TaxPro & CPA, HelenaC, states:

 

Can an attorney's fee be deducted?

Yes, legal fees may be deductible on Form 1040,  Schedule A, Line 28.

Personal legal bills also fall into the “other miscellaneous deductions” category. You can deduct your legal fees as long as the lawyer is pursuing taxable income on your behalf, or is working on a determination, collection, or refund of any tax. For example, if you’re going through a divorce and pay $1,000 to a lawyer who is working to secure alimony for you, you may deduct the $1,000. However, hiring a lawyer to gain custody of a child is not deductible.

You may also deduct legal expenses incurred while doing or working to keep your job. For instance, if you’re in a legal dispute with your company over unlawful termination, you could deduct the expenses as long as you’ve paid the fees you’re deducting and you’re deducting them in the year you paid them.

Legal deductions are limited to 2% of your Adjusted Gross Income (AGI). For instance, if your adjusted gross income is $40,000, your deduction would be limited to $800 – two percent of $40,000. 

To deduct certain legal fees related to taxable income: 

• Type legal expenses, deduction in the search or find box, click search.
• Click on Jump to legal expenses, deduction.
• Continue with the onscreen questions.

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