I had legal fees for a wrongful termination lawsuit in 2018, and settled in 2019. When do I claim the deductions for the expenses?

cheryllynnmarrio · ‎June 1, 2019

AlanT · ‎June 1, 2019

Miscellaneous deductions subject to the 2% limit, including unreimbursed job expenses (reported on Form 2106) have been repealed for tax years 2018 – 2025.

Legal fees for employment lawsuits of this nature were deductible on federal taxes before the changes to the tax laws. Unfortunately, most legal fees and all job-related expenses for W2 earners were eliminated by the new tax laws.

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I had legal fees for a wrongful termination lawsuit in 2018, and settled in 2019. When do I claim the deductions for the expenses?