Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

is there an above the line deduction in 2020 for legal fees paid by the hour for a wrongful termination settlement

steve922
Level 1

taxpayer paid legal fees over the course of several months in 2020 to obtain a settlement for her wrongful termination.  settlement agreement in 2020.  first settlement payments received in 2021

0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

3 Comments 3
PKCPAMST
Level 5

No. Courts have consistently held that legal fees paid by a former employee to pursue a wrongful termination claim against their former employer are too far removed from the performance of an employee's regular duties, making them nondeductible to the former employee.

sjrcpa
Level 15

Did it involve discrimination?


Ex-AllStar
0 Cheers
TaxGuyBill
Level 15

I have in the back of my mind that almost all wrongful termination falls under the discrimination clause. 

Whether or not that is actually correct or not, I don't know.  😂

0 Cheers