I paid an attorney to review my claim of workplace discrimination. I did not go forward with the suit. can i claim this fee as a deduction?
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No. In order to deduct costs involved in unlawful discrimination suits, it must be paid in connection with a lawsuit. A review of your case would not qualify.
Per IRS Publication 525 Taxable and Nontaxable Income, page 30:
Deduction for costs involved in unlawful discrimination suits. You may be able to deduct attorney fees and court costs paid to recover a judgment or settlement for a claim of unlawful discrimination under various provisions of federal, state, and local law listed in Internal Revenue Code section 62(e), a claim against the United States government, or a claim under section 1862(b)(3)(A) of the Social Security Act. You can claim this deduction as an adjustment to income on Schedule 1 (Form 1040), line 36. The following rules apply.
No. In order to deduct costs involved in unlawful discrimination suits, it must be paid in connection with a lawsuit. A review of your case would not qualify.
Per IRS Publication 525 Taxable and Nontaxable Income, page 30:
Deduction for costs involved in unlawful discrimination suits. You may be able to deduct attorney fees and court costs paid to recover a judgment or settlement for a claim of unlawful discrimination under various provisions of federal, state, and local law listed in Internal Revenue Code section 62(e), a claim against the United States government, or a claim under section 1862(b)(3)(A) of the Social Security Act. You can claim this deduction as an adjustment to income on Schedule 1 (Form 1040), line 36. The following rules apply.
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