Question

Employment Legal Expenses

Forum|Forum|6 years ago
February 8, 2020
1 reply
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I was recommended for termination from my employer. I appealed the termination and requested a hearing. An employment separation agreement was negotiated before the hearing. I was awarded a settlement on which I paid both federal and state taxes.

Are the legal fees I paid my attorney deductible?

If so, where do I enter them in TurboTax?

ColeenD3

Unfortunately, no.

The Tax Cuts and Jobs Act of 2017 eliminates miscellaneous itemized deductions as part of individual tax reform.

Prior to this, an individual taxpayer who took itemized deductions instead of a standard deduction could deduct legal fees that were greater than 2% of his or her adjusted gross income as a miscellaneous expense. Now, taxpayers can no longer deduct legal fees as a miscellaneous expense.

Legal Fees