Submitted By: someone
Answered: January 4, 2019 12:54 am

Are legal fees paid to obtain reimbursement of medical expenses deductible?

It depends. Legal fees related to a recovery for unlawful discrimination under various federal laws such as the Family and Medical Leave Act are deductible as adjustments to gross income (i.e., they are deductible whether or not a taxpayer itemizes personal deductions). However, a taxpayer cannot get any tax benefit from legal fees for other medical-related actions even if in the past they could be viewed as deductible. This is because of the suspension in 2018 through 2025 of miscellaneous itemized deductions subject to the 2%-of-adjusted-gross-income floor.

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Tax Glossary

Withholding

An amount taken from income as a prepayment of an individual’s tax liability for the year. In the case of wages, the employer withholds part of every wage payment. Backup withholding from dividend or interest income is required if you do not provide the payer with a correct taxpayer identification number. Withholding on pensions and IRAs is automatic unless you elect to waive withholding.

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