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It depends.
If the legal fees were incurred as part of your business expenses, then they would be deductible.
If the legal fees are incurred as part of a personal claim, they are not deductible.
Please see the link below for more details.
That's clearly not personal. Why is nobody at TurboTax able to answer this question?
Actually, that clearly is personal. It's related to an individual's personal income not their business income (or they wouldn't be an employee).
The fees you mention are personal, however there is an exception to the general rule when if comes to discrimination law suit settlements. Your fees would be deductible, but only up to the amount of your settlement. So, you will have to wait to deduct the fees in the year that you receive your settlement, if any.
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