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kat01843
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I am a truck driver and had to pay a lawyer 5K to get my license back from a lien due to an accident i had while working as a newspaper deliveryman. Can I deduct the 5K?

in 2011 while working as a newspaper deivery person (subconctracted), my car which carried the newspaper, slipped on icy driveway and hit a garage door; the owner of the house said the home insurance would cover it, but the newspaper fired me; i became a truck driver and left that behind me, but in 2013 the home insurance put a lien on my driver's license and I had to pay 5K to get my license cleared. Can i deduct this on my 2014 taxes?

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I am a truck driver and had to pay a lawyer 5K to get my license back from a lien due to an accident i had while working as a newspaper deliveryman. Can I deduct the 5K?

Legal fees are generally not deductible on a personal 1040 return..

There are two significant exceptions

  • Legal fees are deductible if incurred to determine or collect any tax liability.
  • Legal fees are deductible if the suit is to secure taxable income

Therefore, your legal expenses incurred to secure your license would not be deductible.


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1 Reply

I am a truck driver and had to pay a lawyer 5K to get my license back from a lien due to an accident i had while working as a newspaper deliveryman. Can I deduct the 5K?

Legal fees are generally not deductible on a personal 1040 return..

There are two significant exceptions

  • Legal fees are deductible if incurred to determine or collect any tax liability.
  • Legal fees are deductible if the suit is to secure taxable income

Therefore, your legal expenses incurred to secure your license would not be deductible.


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