Can I deduct legal fees for a group long term disability claim?

[tlzhu]

I hired a lawyer to appeal my group long term disability claim, with a 30% contingent fee. The claim was approved. I received a W-2 from the insurance co, listing the full recovery as my income, with 45% being taxable income in Box 1 and 55% as non-taxable in Box 12, code j. Can I deduct the 30% or part of the 30% attorney fee?

[JohnW15 · Accepted solution]

No, you can't.  Unfortunately, this type of legal expense is no longer deductible.

The only legal fees that are now deductible as personal deductions on Form 1040 are for unlawful discrimination claims.

[tlzhu]

Thanks a lot.