attorney fees

1)my daughter received 3rd party sick pay from Hartford in 2018 - she had to hire an attorney to fight for this and his fee is 1/3 - does she have to pay tax on full amount or on 2/3?

2) in 2019 my daughter received retro-active social security benefits and had to repay the 3rd party sick pay back to Hartford which she paid tax on 2016,2027,2018 - she also had to pay attorney $6,000 for getting social security - how will I show the amount repaid and attorney fee for social secutiry

posted

How much had to be repaid? More or less than $3000?

Unfortunately, The attorney fees are not deductible due to the new tax law so any tax is based on the actual income received / repaid