Submitted By: someone
Answered: June 18, 2018 10:54 pm

Can legal fees for a whistleblower award be deducted even if I don’t itemize?

Legal fees paid in connection with certain whistleblower awards are deductible from gross income; no itemizing is required. One such deductible award is a “Section b” award (which is a mandatory award if certain conditions are met) through the IRS Whistleblower Office; an award under a “Section a” award (which is a discretionary award) does not allow legal fees to be deducted above-the-line. If deductible, the amount you can claim is limited to the amount of the award included in gross income.

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Tax Glossary

Hobby loss

Hobby expenses are deductible only up to income from the activity; loss deductions are not allowed.

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