Are attorney fees deductible for a defense?

posted

No, they are not, unfortunately.

With the new tax reform TCJA, it eliminates miscellaneous itemized deductions including the legal fees. Prior to the 2017 Act, you could deduct legal fees that were greater than 2% of your adjusted gross income as a miscellaneous expense. However, not anymore after 2017. There are still some legal fees might qualify for a deduction against your gross income like discrimination or Trade & Business related but they won't apply to you.