Can Divorce Couples Deduct Legal Fees During Tax Season?

As tax time rolls around again, many divorcing couples wonder whether or not any of the expenses related to their divorce can be deducted as April 15 approaches. Unfortunately, the answer is almost always a resounding no. The IRS does not allow tax deductions related to divorce legal actions, divorce counseling, or divorce personal advice, and Supreme Court has upheld those deduction restrictions in the past.

However, there are a few small exceptions. If you have expenses related to tax advice or property transfer advice that you needed in connection with your divorce or legal separation, those costs are tax-deductible. In addition, legal fees paid related to collecting alimony can also be deducted. However, anything that you deduct must not total more than two percent of the filer’s adjusted gross income (AGI).

If you Seattle divorce lawyer’s services include tax information and counseling, be sure to ask for an itemized bill so that tax deductions are possible.