topic Can I deduct Legal Expenses for a lawsuit involved with unlawful discrimination claims? in Deductions & credits

Can I deduct Legal Expenses for a lawsuit involved with unlawful discrimination claims?

buckeye1996 — Wed, 16 Sep 2020 00:11:49 GMT

Can I deduct Legal Expenses for a lawsuit involved with unlawful discrimination claims?

Unfortunately, my claim was not supported by the judge and I got 0 income from this lawsuit.

Thanks.

Re: Can I deduct Legal Expenses for a lawsuit involved with unlawful discrimination claims?

rjs — Wed, 16 Sep 2020 01:23:06 GMT

The deduction for legal expenses for an unlawful discrimination lawsuit is limited to the amount of the judgement or settlement that you are reporting as income. Since you received no judgement, you cannot claim any deduction for the legal expenses.

Re: Can I deduct Legal Expenses for a lawsuit involved with unlawful discrimination claims?

ee-ea — Wed, 16 Sep 2020 01:51:09 GMT

You can deduct only up to the amount you got from the suit.

I.R.C. § 62(a)(20)

https://irc.bloombergtax.com/public/uscode/doc/irc/section_62