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Level 4
April 3, 2026

Client with w-2 that includes 10,000 paid to lawyer

  • April 3, 2026
  • 1 reply
  • 18 views

client received a w-2 with Lawyer fees paid out of w-2 wages of $10,000 this was from a severance settlement for workforce reduction is this deductible if so where in the software.   

Thanks in advance for your help

PBP

1 reply

sjrcpa
Level 15
April 4, 2026

For plain severance, No.

Was  personal injury or discrimination involved?

The more I know the more I don’t know.
pbpAuthor
Level 4
April 4, 2026

No discrimination or personal injury.

Thank you for your response

sjrcpa
Level 15
April 4, 2026

You're welcome.

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