Generally, divorce-related legal fees are not tax deductible unless you have a high enough AGI. In addition, your deductions for the costs of divorce-related legal services must be larger than the standard deduction. For high-income taxpayers, this may be impossible. In this case, it is best to seek legal advice. Otherwise, you will be stuck with the bill. If you have questions, call a Tax Attorney or CPA.
In addition, the legal fees for property settlement or deed preparation are not deductible. However, the costs for filing alimony and dividing retirement account contributions can be deductible. However, the fees for tax planning can still be deductible. However, you should be aware that there are a number of ways to minimize these costs. If you're considering divorce attorney fees as a means to reduce your tax liability, consult a tax professional.
The Tax Cuts and Jobs Act of 2017 has changed the rules relating to itemized deductions and divorce. The new tax law has reduced some of the itemized deductions, including "Miscellaneous Itemized Deductions." For tax years 2018-2025, these expenses will be eliminated. Even though the paying spouse can deduct the fees for the divorce, the paying spouse must still include the cost of alimony in his or her income.
Depending on your circumstances, you may be able to deduct your legal fees as long as you can demonstrate that you are a taxpayer. Oftentimes, you can deduct legal fees associated with the collection of income. For example, legal action to collect child support or spousal support may be considered income producing, and thus tax-deductible. Tax research and advice fees can also be deducted if they are part of a property transfer. However, your attorney must indicate if the fees he or she charges you are a deduction.