How to Deduct Attorney Fees Used to Collect Child Support
The Internal Revenue Service, or IRS, allows divorcing spouses to deduct their fees paid to attorneys for alimony or tax advice; all other fees paid to attorneys are nondeductible. The IRS does not allow divorcing spouses to deduct their attorneys' fees used to defend against paying child support or used to collect child support payments. Instead, if you paid your divorce attorney to collect or defend against paying child support, and you paid your divorce attorney to render professional tax advice or to pursue or to defend you against paying alimony, you can only deduct the portion of fees related to deductible expenses.
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Instructions
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1
Organize your attorneys' bills from the current tax year. You can only deduct your allowable attorneys' fees as itemized deductions if you itemize your tax deductions.
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2
Add up the fees your attorney charged you to collect alimony payments or to defend against an alimony claim.
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3
Total your deductible attorneys' fees. If your total fees exceed 2 percent of your adjusted gross income reported on Line 38 of Form 1040 or Line 37 of Form 1040NR, you may be able to deduct your attorneys' fees.
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4
Multiply your adjusted gross income reported on Line 38 of Form 1040 or Line 37 of Form 1040NR by 2 percent. If your total deductible attorneys' fees exceed the total after multiplying your adjusted gross income by 2 percent, you can deduct your attorneys' fees up to a limit.
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5
Subtract the total deductible attorneys' fees from your multiplied total in Step 4. The difference is deductible. In other words, you can only deduct your attorneys' fees if the deductible portion exceeds 2 percent of your adjusted gross income, and you can only deduct the portion exceeding 2 percent of your adjusted gross income.
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Enter the deductible portion on Line 28, Miscellaneous Deductions, of Schedule A, Itemized Deductions.
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Sign, date and send both forms to the IRS or file them electronically.
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Tips & Warnings
Ask your attorney to itemize his bills for tax purposes before you sign your retainer letter. If he cannot accommodate you, many other attorneys can. This will make your job easier at tax time.
If your attorney did not specifically itemize his work and provide you with a specific breakdown of how he assessed his fees, you may not be able to deduct your attorney's fees. Although state bar association rules vary, most state bars require attorneys to bill their clients by the tenth of an hour and to provide a summary of work provided with each bill.
