What fees, legal or otherwise, are deductable?

Legal fees and other costs incurred in a divorce or separation attributable to the production or collection of amounts includible in gross income are deductible. Since spousal support, as long as it is not nontaxable spousal support, is to be included in the recipient’s gross income as alimony, the recipient is allowed to deduct, as a miscellaneous itemized deduction, subject to the 2%-of-adjusted-gross-income limit, the amount paid in that year for services related to spousal support. Fees paid to recover spousal support arrearages or to increase spousal support are also considered to be allowable deductions.

Posted in: Legal & Other Fees