Qualifying for a Legal Fees Tax Deduction

Legal fees deductible

People who have had to hire an attorney during the course of the year may be entitled to a tax refund. The IRS allows people to deduct legal fees when filing for taxes. These deductions can often help reduce the amount of money you owe to the IRS or help you receive some money back in the form of a refund check.

There are a few things you must do in order to qualify for the legal fees tax deduction. The main thing you have to do is file an itemized tax return. An itemized tax return must be completed as it is the only way to declare a tax deduction for legal fees.

Filing an itemized tax return can be time consuming and frustrating. Luckily, there are many CPAs, accountants, and tax professionals who are trained to fill out itemized tax returns. These trained tax professionals will make sure that you fill out all the proper forms to guarantee that you will qualify for legal fees tax deduction.

Another thing you will have to do to qualify for legal fees tax deduction is save all receipts from the attorneys, law firms, or lawyers that you have hired. The IRS will often require proof of the amount that you are declaring as part of the tax deduction for legal fees. A receipt will count as an acceptable form of proof, as will an itemized account from a law firm or attorney, or even a cancelled check for deductible legal fees.

The laws regarding legal fees tax deduction qualifications are always changing. Things that can change from year to year in regards to tax deductibility of legal fees includes the amount that is deducted, the type of legal fees, and even the type of lawyer that was used. It is important to follow up with the IRS or to consult a tax professional to make sure that you qualify for a legal fee tax deduction.

Legal Fees Deductible