Legal Fee Deduction

Today TaxMama hears from Julian in the TaxQuips Forum with an easy question. “I wonder if I can deduct immigration lawyer costs from my tax return? The fees were to get me the work permit for my current job in the US.”

Hi Julian,

 Yes. Since the legal fees were to help you generate taxable income, you could deduct the costs. You’ll need to use the deduction based on the nature of the employment that attorney helped you get.

If the legal fees were to help you get a job, unfortunately, the deduction goes on Schedule A, as Miscellaneous Itemized Deductions.

However, you would need enough expenses to itemize – more than your standard deduction PLUS 2% of your adjusted gross income (that’s the last line on page 1 of the Form 1040 tax return).

If it was a consulting contract, or whatever it is that you’re reporting as income on Schedule C, then, yes, you can use the deduction on Schedule C.

And remember, you can find answers to all kinds of questions about tax deductions and other tax issues, free. Where? Where else? At www.TaxMama.com.

[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the join TaxMama.com link – it’s free!]

Please post all Comments and Replies in the new TaxQuips Forum .

Leave a Reply