Quote:
Originally Posted by Knut
If you deduct lawyer fees off your income tax can you then also deduct the same fees from the tax on your settlement ?
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Sorry I should clarify this
- typically your settlement is considered employment income for tax purposes
- legal fees spent to collect the settlement are deductible against employment income
This is of course the vanilla straightforward situation - consult some real tax experts as there are some exceptions to this depending on your circumstances.