SSDI Legal Fees
Could SSDI legal fees be deductible as a self-employed business expense? This is for a disabled individual with a small amount of self-employment income. Legal fees were taken out of lump sum back-pay, but will likely not be deducted from the total amount issued on form SSA-1099. Thank you!
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According to the IRS's website "fees charged by accountants and attorneys that are ordinary and necessary expenses directly related to operating your business" can be deducted on line 17 of your Schedule C.
To do this within our software, please follow the instructions below:
-Select the "Income" tab from the main menu bar located at the center of the screen > Locate the "Business Income" sub-header > select the "Business Income (schedule C)" option.
From there, please select the correct Schedule C entry to edit. Under the "Expenses and Assets" category select the "Edit" box next to the "Common Expenses" category. On the new page within the software, find the "Administrative Expenses" header and then enter the amount in the box adjacent to the "Legal / Professional Services" sub-header.
For more information regarding the source of this information please visit the link below:
