Lawsuit Settlement Income

[cajunboy]

I received a settlement from a lawsuit of Economic Loss from an oil company.  Where do I input the attorney fees?

[AlanT222 · Accepted solution]

If the settlement you received from the lawsuit is taxable, generally, you deduct personal attorney fees as an itemized miscellaneous deduction on Schedule A of your Form 1040 tax return. This means you get a deduction only if you itemize your personal deductions instead of taking the standard deduction. 

If the settlement you received is not taxable, you cannot deduct the legal fees.