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

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.

 

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2 Replies
rjs
Level 15
Level 15

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

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.

 

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

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

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