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

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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?


The more I know the more I don’t know.
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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.  😂

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