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Level 5
Mar 16, 2022 10:19 PM UTC
Solved

Attorney fee deductibility

So it appears under code section 62(a)(20) attorney fees are still able to be deducted above-the-line if fees are related to discrimination lawsuits.  If a taxpayer won a disability settlement from a third party insurance carrier, does this fall under this code section?  Assuming it does, I would assume it would be shown on Schedule 1 of form 1040, line 24z, with a description of "expenses deductible under IRC 62" as it might also be covered under section 62(e), specifically (18)..?

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11BusterAnswer
Level 5
Mar 16, 2022 11:48 PM UTC

I think it goes on Line 24h


It's actually under IRC 62 as mentioned.....but yes, that is even a better line to put on.  Thanks!

7 replies

sjrcpa
Level 15
Mar 16, 2022 10:34 PM UTC

"If a taxpayer won a disability settlement from a third party insurance carrier,"

I think they won their case against the party who discriminated. Then that party's insurance carrier paid up.

 

The more I know the more I don’t know.
11BusterAuthor
Level 5
Mar 16, 2022 11:00 PM UTC

Well, the fact that the insurance company canceled her (as this multi-billion company is supposedly known for), I guess is "discrimination" in that she, along with others if rumor has it was singled out.  Meaning, not all policy claimants over time, have been canceled 100%.  Would you show on schedule and word as I had suggested?

sjrcpa
Level 15
Mar 16, 2022 11:29 PM UTC

What kind of discrimination?

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