Question

Lump sum SS disability payment and attorney fees

Forum|Forum|5 years ago
July 13, 2020
1 reply
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For a lump sum SS disability payment, can the attorney fees be subtracted? for example, we got a 20K payment in 2019 with 25% going directly to our attorney. Can we just report getting 16K on for 2019 taxes? From what I have read, we need to report the entire amount in box 5 on form SSA-1099

A

AnnetteB6

Legal fees are no longer a tax deductible expense starting with the 2018 tax return. You must report the full amount of the lump sum payment that you received, including the amount that was paid directly to the attorney.

@swp2019

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