can you deduct fees for social security disability attorney fees

I hired a attorney to fight my social security disability claim. Can I deduct what was taken out of my SDID payment?
  • Where does the legal fee deduction go for fees paid to my attorney for social security disability?  I received an SSA-1099 from social security that lists the $6,000 attorney's fees, but TurboTax doesn't have an obvious place for this deduction under the Social Security Income section.
Cancel
You may deduct legal fees on your tax return for collecting disputed Social Security only to the extent that your benefits are taxable on your tax return (i.e., if 50% of your social security is taxable, 50% of the legal fees would be deductible.)  That likely would result in no deduction if your payment of legal fees was for social security disability payments.

If deductible, the expenses are a miscellaneous itemized deduction.  Miscellaneous itemized deductions are only available if you qualify to itemize and only to the extent that they exceed 2% of your Adjusted Gross Income.  

Example:  If your AGI is $50,000, only miscellaneous deductions over $1,000 are deductible.  Because of this, many items deductible as miscellaneous itemized deductions have no tax value because the taxpayer doesn't itemize, or because they are lost in the 2% of adjusted gross income limitation.
  • please be more specific
  • thats what I said! is it yes or no?
  • You can't answer yes or no because it's not a yes or no answer.  As pointed out above, depending on the circumstances, some of it may be deductible.
  • This is so confsing.  Do I enter the amount here under legal fees or in misc itemized deductions?
  • Where does the legal fee deduction go for fees paid to my attorney for social security disability?  I received an SSA-1099 from social security that lists the $6,000 attorney's fees, but TurboTax doesn't have an obvious place for this deduction under the Social Security Income section.
Cancel
Contribute an answer

People come to TurboTax AnswerXchange for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.
Cancel