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posted Jun 4, 2019 5:11:51 PM

I have a lawsuit against my former employer for back wages that are owed to me on my contract - Can I deduct those fees? and if yes on what form?

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1 Replies
Intuit Alumni
Jun 4, 2019 5:11:53 PM

No - In tax years before 2018, the legal fees related to producing or collecting taxable income or getting tax advice were deductible as Miscellaneous Deductions Subject to the 2% AGI Limit.

This deduction has been eliminated for tax years 2018-2025.  You can still enter the fees in TurboTax since they may be deductible on your state return.

Please follow these steps:

  1. On the Deductions & Credits screen, scroll down to Other Deductions and Credits.
  2. Click the Start/Revisit box next to Legal Fees.
  3. On the next screen, click the Enter my expenses box and enter the fees on the next screen.