Can legal fees be an itemized deduction?

Legal fees related to personal matters cannot be included in your itemized deductions. The fees you pay in connection with the determination, collection, or refund of any tax. Whether a lawyer's fees may be tax-deductible will generally depend on whether the fees are associated with a personal legal problem or a legal problem related to a business. This is especially true if the legal fees are related to a business matter, such as legal fees paid to a lawyer to help you file your company's Articles of Incorporation.

For example, while attorneys' fees paid in the event of legal separation or divorce will not be eligible for a tax reduction, attorneys' fees that must be paid to bring legal action to collect back child support or spousal support may be tax-deductible. That way, if a person wants to request a tax deduction for a lawyer's fees related to a personal legal matter, they'll have no problem separating which parts can be legally deducted and which parts of the bill can't. In general, attorneys' fees related to a personal legal matter, such as a divorce or legal separation, are generally not considered tax-deductible. As mentioned above, a good rule of thumb to follow is that if legal fees were generated when trying to generate or collect taxable income, those legal fees will most likely be eligible for a tax deduction.

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