- Generally, legal fees are not tax deductible.
Legal fees and court costs for getting a divorce are
not tax deductible. A Taxpayer may, however, deduct
legal fees for tax advice in connection with a divorce and legal fees
to get alimony. Fees paid to appraisers, actuaries, and accountants for services in to determine the correct tax
or in helping to get alimony are tax deductible.
- Fees for tax advice from a tax attorney are tax deductible.
Legal fees paid in connection with a divorce may include charges that are deductible
and charges that are not tax deductible. Taxpayers should always
request a breakdown from their attorney showing a breakdown of the amount of charges for each service
performed.
- Fees for tax advice is only tax deductible if the taxpayers itemize their deductions.
A taxpayer can claim deductible fees only if they itemize deductions
on their Schedule A (Form 1040). These type of miscellaneous deductions are subject to the
2% floor of adjusted gross income (AGI) limit.
- Taxpayers bear the burden of proving their tax deductions.
A taxpayer can deduct fees for advice on federal, state and local taxes
of all types, including income tax, estate tax, gift tax, inheritance, and property taxes. It
is the taxpayer who bears the burden or proving the right to any tax deduction.
- What tax issues typically arise in a divorce?
With these issues in mind, people involved in divorces typically have the following tax issues.
Is the Alimony and Support Payments tax deductible or treated as income?
Are the exchanging or awarding of property incident to divorce taxable transactions?
Is there a gift tax on property settlements during my divorce?
Is the sale of my residence a taxable transaction?
Who gets to use the children as dependents for the purposes of tax deductions?
What expenses, if any, are tax deductible for child and dependent care expenses?
What tax filing status should I use?
My spouse has a huge tax liability, can I qualify for the Innocent Spouse Relief?
What are the tax consequences of Qualified Domestic Relations Orders?
Are retirement and social security benefits taxable?
A half-hour consultation with Mr. Gillet, a well-qualified tax attorney can give you answers
to all of these tax questions.
