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The Curious Bag
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<h4 class="dechead">On One Hand: No Deductions Without Income
Taxpayers saddled with large attorney fees would love to get a little bit back in the form of a tax deduction. But unless you hired a lawyer to help you earn taxable income, attorney fees generally are not considered a legitimate tax deduction, according to Lawyers.com.
On the Other: Earned Income
Attorney and other professional fees may be deducted if the taxpayer can show that the fees were necessary to earn or protect taxable income, according to TurboTax. The certified public accountant firm of Feeley and Driscoll says the lawyer fees must be reasonable, ordinary and necessary to do business. Only the part of divorce fees that pertain to collecting alimony or the taxability of alimony are deductible, says TurboTax.
Bottom Line
If you pay a lawyer to help you make taxable money, or to defend an IRS audit, you can deduct those fees on your income tax return.
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