Can lawyer fees be deducted on tax return for child custody proceedings?
Thursday, February 4th, 2010 at
10:48 pm
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Legal fees can be deducted if they relate to collection of alimony (which is taxable) or for other tax advice even if given in connection with a divorce or other matters (the atty should break-out and specifically identify the tax-related portion of the bill to protect you in the event of audit). If the services/legal bill is for child support issues only and says nothing about tax advice, no deduction will be permitted.
Sorry.
No. Attorney fees can only be deducted if the case involves receiving income that would be subject to federal income tax.
No. Attorney’s fees are only deductible if they are for tax advice, tax return preparation, or relate to the generation of taxable income. Fees for a custody battle or child support payments are not related to any of those and are therefore not deductible.