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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10097
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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My name is ***** ***** I have income from a discrimination

Customer Question

My name is ***** *****
JA: Thanks. Can you give me any more details about your issue?
Customer: I have income from a discrimination lawsuit. I was an employee of the government, who was discriminated against. I was provided a 2015 Form W-2 for $5000 (approx) reflecting the settlement including reimbursement for $2000 in attorney fees. I have approx. $11,000 in attorney fees attributable to the matter in 2015. Confused on where and how much to deduct.
JA: OK got it. Last thing — Tax Professionals generally expect a deposit of about $32 to help with your type of question (you only pay if satisfied). Now I'm going to take you to a page to place a secure deposit with JustAnswer. Don't worry, this chat is saved. After that, we will finish helping you.
Submitted: 9 months ago.
Category: Tax
Customer: replied 9 months ago.
Of the $11,000 in total attorney fees, $2300 was in a final billing directly related to the case and settlement and was billed and paid after the settlement was issued.
Customer: replied 9 months ago.
My e-mail address is***@******.***
Expert:  Lane replied 9 months ago.

Hi,

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You deduct the attorneys that were not reimbursed as an itemized deduction.

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See this from Master Tax Guide:

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"Legal fees related to keeping or doing your job may be included as an itemized deduction under 'unreimbursed employee expenses.' Note that you must Itemize to benefit and the total expenses is first limited by 2% of a subtotal on your tax return (AGI)."

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If you're using Turbotax:

  1. click Personal tab
  2. click Deductions and Credits below
  3. select 'I'll choose what I work on'
  4. scroll down to the last section 'Other Deductions and Credits'
  5. click Start or Update next to Legal Fees

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Let me know if you have questions

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Lane

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I hold a JD (Juris Doctorate, a doctoral degree in the law), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP® and CRPS designations. - I’ve been providing financial, Social Security & Medicare, estate, corporate & tax advice since 1986.

Expert:  Lane replied 8 months ago.

Hi,

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I’m just checking back in to see how things are going.

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Did my answer help?

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Let me know…

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Thanks

Lane

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