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Legal fees related to employment

Are CPA fees deductible when related to legal fees that relate to your employment or business?

 

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3 Replies
Cynthiad66
Expert Alumni

Legal fees related to employment

Yes - You can deduct any accounting fees that you pay for your business as a deductible business expense—for example, fees you pay an accountant to set up or keep your business books, prepare your business tax return, or give you tax advice for your business.

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Legal fees related to employment

I apologize I asked the wrong question.  I meant are CPA fees deductible as legal fees when you are suing your employer for monies owed to you.

AmyC
Expert Alumni

Legal fees related to employment

Money spent in pursuit of taxable income can usually be deducted. 

 

I don't understand CPA fees for suing an employer so you will need to verify they are qualified expenses. If the CPA fee is part of the required Qualified legal fees, they are deducted on sch 1. You will report it as negative income rather than a deduction.

 

To enter your qualifying legal fees in TurboTax Online,

  • Go to Wages & Income
  • Scroll down to Less Common Income, 
  • Next to Miscellaneous Income,
  • Select  Other reportable income
  • Description "Qualifying Legal Fees," and
  • Enter the amount as a negative number.

The deduction will appear as an “above the line” deduction and will be deducted from your gross income.

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