Are legal fees associated with workplace complaint deductible?

Unfortunately, no, not on your federal return.   Any legal fees that are related to personal issues can't be included in your itemized deductions.  According to the IRS, these fees include:

• Fees related to nonbusiness tax issues or tax advice.
• Fees that you pay in connection with the determination, collection or refund of any taxes.
• Personal legal expenses, including:
  • Child custody
  • Purchasing real estate
  • Breach of promise to marry
  • Civil or criminal charges related to personal relationships
  • Personal injury
  • Title preparation
  • Estate planning such as will preparation
  • Property claims or settlements
  • Divorce
• Fees for defending civil or criminal charges that arise from your participation in a political campaign

Job-related expenses for employees are no longer deductible on most people’s federal return in tax years 2018 through 2025 due to the Tax Cuts and Jobs Act (TCJA) that Congress passed and the President signed into law on December 22, 2017. However, the job-related expenses deduction is still available to people who work in one of these specific professions or situations:

• Armed Forces reservist
• Qualified performing artist
• Fee-basis state or local government official
• You're disabled and have impairment-related expenses

Additionally, job-related expenses may be deductible in your state.   Enter your expenses and we’ll figure out if you can deduct them.