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.

advertisement
Tax Glossary

Tax attributes

When debts are cancelled in bankruptcy cases, the cancelled amount is excluded from gross income. Tax attributes are certain losses, credits, and property basis that must be reduced to the extent of the exclusion.

More terms