Legal expenses

[Boobryant]

I received a settlement from a former employer for my Employee Stock Ownership Program. Since I rolled it into a qualified IRA are the legal fees tax deductible?

[DavidD66 · Accepted solution]

Generally, legal fees for claims against an employer are deductible.  To enter your qualifying legal fees:

• In your open Federal return, choose the tab for Wages & Income
• Scroll down to Less Common Income and Show more
• Start/Revisit Miscellaneous Income and choose Other reportable income 
• Say Yes to continue to the screen "Other Taxable Income". Enter the description "Qualifying Legal Fees" and the amount as a negative number. 

[jc238]

Thank you for this information.