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Jim-from-Ohio
Intuit Community Champion
December 27, 2024

"Above the line" legal fee deduction

  • December 27, 2024
  • 1 reply
  • 11 views

From what I am reading there is still a deduction for legal fees paid for contigency cases on employment lawsuits.. based on your knowledge, can anyone confirm that.. also if it is still in place would it cover an employee that won a contigent fees for actual assault?  

    1 reply

    BobKamman
    Level 15
    December 27, 2024

    Not all employment lawsuits qualify, only those involving "unlawful discrimination."  So what kind of claim are you dealing with?  

    Jim-from-Ohio
    Intuit Community Champion
    December 27, 2024

    s... harrassment

    BobKamman
    Level 15
    December 27, 2024

    By the employer?  Doesn't sound like discrimination to me, nor does it sound like a case where the settlement would be taxable (physical injury involved).  You only get the deduction if the proceeds are taxable.  But there is a long list of qualifying claims at Code Section 62(e), if you want to ask if any apply.