I just received a 1099 misc for other income which was for attorney fees in a employment wage lawsuit settlement that I received- Can I deduct this as legal fees?

[jolinm]

My employer settled my suit for back wages/overtime owed with a settlement of which a certain percentage would be given to the law firm representing me for their attorney fees.  I received a W2 with taxes taken out of my portion. I just received a 1099 misc showing other income which was the percentage my employer sent to the attorney. While filing my taxes it appears I now owe the IRS  as the 1099 misc raised my gross income. Can I deduct the amount that went for attorney fees from the settlement as a  legal fee deduction? 

[brent_meeks]

With the new deductions for 2019, are the fees to attorneys still tax deductable?

[JaimeG · Accepted solution]

Yes, you may deduct your Attorney's Fees but in order to do so the Deduction must be itemized with Schedule A as a Miscellaneous Deduction. This means that in order to be deductible the sum of your Miscellaneous Deductions must exceed 2% or your Adjusted Gross Income (AGI). Another factor that must be considered is your Standard Deduction. In order for the deductions in Schedule A to be beneficial to your Tax Return the sum of your itemized deductions must exceed the amount of your Standard Deduction. The Standard Deduction table for 2016 is below:

• Single $6,300.00
• Married Filing Joint or Qualified Widow(er) $12,600.00
• Married Filing Separate $6,300.00
• Head of Household $9300.00
• Dependent $1,050.00

I have also attached a list of common Itemized Deductions so that you may collect as many of these expenses as possible and enter them as deductions into TurboTax. Upon final review of your Tax Return TurboTax will let you know if your Standard Deduction or your Itemized Deductions were most beneficial to your Return.