Are Your Legal Fees From your Divorce Tax Deductible? Tax Deduction Often Overlooked!
Generally speaking, the IRS does not allow a write-off for court costs and legal fees stemming from a divorce. It does, however, offer deductions for any portions of those fees related to tax advice and alimony.
What Fees Can Be Considered Tax Deductable During A Divorce?
According to the IRS, legal fees that are specifically spent to collect spousal support can be included under “other expenses” with the itemized deductions listed on Schedule A of tax form 1040. This write-off is also available for any proceeding in which a spouse is attempting to collect taxable spousal support, increase the amount of support, or collect any past due amount. It is important to note, however, that the IRS does not allow a deduction for the cost of trying to collect non-taxable income during divorce, such as overdue child support or temporary spousal support. In addition, it does not allow for the deduction of any of your spouse’s legal fees that you may be ordered to pay. What it does allow for is a write-off for any research and time spent on tax-related subjects such as real … Read More... “Tax Deduction: Divorce Legal Fees”