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Level 5
March 16, 2022
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Attorney fee deductibility

  • March 16, 2022
  • 1 reply
  • 15 views

So it appears under code section 62(a)(20) attorney fees are still able to be deducted above-the-line if fees are related to discrimination lawsuits.  If a taxpayer won a disability settlement from a third party insurance carrier, does this fall under this code section?  Assuming it does, I would assume it would be shown on Schedule 1 of form 1040, line 24z, with a description of "expenses deductible under IRC 62" as it might also be covered under section 62(e), specifically (18)..?

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Best answer by 11Buster

I think it goes on Line 24h


It's actually under IRC 62 as mentioned.....but yes, that is even a better line to put on.  Thanks!

1 reply

sjrcpa
Level 15
March 16, 2022

"If a taxpayer won a disability settlement from a third party insurance carrier,"

I think they won their case against the party who discriminated. Then that party's insurance carrier paid up.

 

The more I know the more I don’t know.
11BusterAuthor
Level 5
March 16, 2022

Well, the fact that the insurance company canceled her (as this multi-billion company is supposedly known for), I guess is "discrimination" in that she, along with others if rumor has it was singled out.  Meaning, not all policy claimants over time, have been canceled 100%.  Would you show on schedule and word as I had suggested?

sjrcpa
Level 15
March 16, 2022

What kind of discrimination?

The more I know the more I don’t know.