The Most Overlooked Tax Deductions, Part 5

Many taxpayers overlook the long list of deductions that they may take when completing and filing their tax returns. The tax professionals at the Thorgood Law Firm can help ensure that all taxpayers take advantage of any and all deductions that may apply to them.  Here is the fifth part of our multi-part blog on the most overlooked tax deductions:

LEGAL INCOME & FEES AS DEDUCTIONS

Jury pay paid to employer

While serving for jury duty, many employees are still paid by their employers. However, employees must then turn over any pay received for jury duty to their employer. Because the IRS requires that these jury fees must be reported as taxable income, taxpayers may deduct this amount remitted to an employer, typically as a write-off on line 36 of Form 1040.

Legal fees paid to secure alimony

Legal fees and court costs for a divorce are nondeductible personal expenses, nonetheless, some attorney fees may be deductible. Because alimony is taxable income, that portion of an attorney’s fee attributable to determining and obtaining alimony is deductible.

Also, that portion of a fee attributable to tax advice may also be deducted, which requires a taxpayer to itemize in order to receive tax savings for such an expense. Such costs constitute “miscellaneous expenses” that are deductible to the extent that the total exceeds 2% of AGI (adjusted gross income). Fortunately, most attorneys provide detailed statements that identify and distinguish specific services allowing such amounts to be identified with reasonable certainty.

If you live in the New York or the Tri-State area and have any questions about any possible tax deduction, call THE TAX EXPERTS at the Thorgood Law Firm www.thorgoodlaw.com. For a FREE consultation, call 212-490-0704.The Most Overlooked Tax Deductions, Part 5

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