Don’t we all want to know about tax deductions? It’s good to take advantage of any deductions that we possibly can. Learn more about these deductions by checking out the commonly asked tax questions below.
Are legal fees tax deductible?
Most legal fees are not tax deductible. Legal fees associated with recovering income such as spousal support or lost wages are deductible. Otherwise, legal fees are not deductible. A general rule of thumb is that if the settlement is taxable income, then the fees are deductible. If the settlement is not taxable (e.g. money from a personal injury settlement) then the legal fees are not deductible.
