I received a 1099-MISC of $25,000 by Washington state to reimburse me for my defense attorney fees incurred during a criminal trial. We won the case because I was wrongfully charged for a crime I didn't commit. Is this a taxable income? If so, is there a way to deduct this amount like you do for gambling income? I'd appreciate a response by anyone who knows about this. Thanks.
01991
1 Replies
KrisD15
Expert Alumni
Mar 18, 2025 7:43:09 AM
No, attorney fees are not deductible unless paid as a business expense, paid for an unlawful discrimination lawsuit or against the US Government.