turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

I had a DoorDash legal settlement. There were legal fees incurred in the tax stub information they gave us, are those categorized as "legal and professional fees"?

 
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

3 Replies
ee-ea
Level 15

I had a DoorDash legal settlement. There were legal fees incurred in the tax stub information they gave us, are those categorized as "legal and professional fees"?

Did you get paid for the settlement in 2021?

I had a DoorDash legal settlement. There were legal fees incurred in the tax stub information they gave us, are those categorized as "legal and professional fees"?

Yes, I was paid out for this settlement in 2021.

JamesG1
Employee Tax Expert

I had a DoorDash legal settlement. There were legal fees incurred in the tax stub information they gave us, are those categorized as "legal and professional fees"?

We are not able to see the tax stub to see what you were told.  They may very well be 'legal and professional fees'.

 

IRS Publication 529 page 5 states:

 

Legal expenses that you incur in attempting to produce or collect taxable income or that you pay in connection with the determination, collection, or refund of any tax are miscellaneous itemized deductions and are no longer deductible. 

 

You can deduct legal expenses that are related to doing or keeping your job, such as those you paid to defend yourself against criminal charges arising out of your trade or business. 

 

You can deduct expenses of resolving tax issues relating to profit or loss from business reported on Schedule C (Form 1040), Profit or Loss From Business (Sole Proprietorship), from rentals or royalties reported on Schedule E (Form 1040),.........Expenses for resolving nonbusiness tax issues are miscellaneous itemized deductions and are no longer deductible.

 

@Rboguiren1
 

 


 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies