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April 15, 2021
Question

Legal fees

  • April 15, 2021
  • 1 reply
  • 0 views

A former employer is suing me to recover compensation stating I violated an employment agreement. Are legal fees paid to defend myself deductible. I did pay taxes on the prior compensation.

    1 reply

    macuser_22
    Employee
    April 15, 2021

    No.. The Tax Cuts and Jobs Act of 2017 eliminated the legal fees deduction for 2018-2025 except for discrimination law suits if you were discriminated against.

    **Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**