$104.95 
Learn more
Submitted By: someone
Answered: December 9, 2020 10:33 pm
Answered: December 9, 2020 10:33 pm
I overpaid my taxes and the IRS denied my refund claim. I want to take the government to court to get my money back (I believe I’m in the right). Can I deduct my legal fees for pursuing this case?
Legal fees related to seeking a refund of individual income taxes normally would be deductible as a miscellaneous itemized deduction subject to the 2%-of-adjusted-gross-income floor. However, this deduction is suspended for 2018 through 2025. Win or lose, legal fees related to business taxes (but not personal taxes on business income) may be a deductible business expense.
advertisement
Featured Books
Tax Glossary
Deductions
Items directly reducing income. Personal deductions such as for mortgage interest, state and local taxes, and charitable contributions are allowed only if deductions are itemized on Schedule A, but deductions such as for alimony, capital losses, moving expenses to a new job location, business losses, student loan interest, and IRA and Keogh deductions are deducted from gross income even if itemized deductions are not claimed.
