Skip to content

Posts from the ‘Tax Implications’ Category

Can my legal expenses be deducted from my income taxes?

In the majority of cases legal expenses cannot be deducted against your income taxes. There are however a couples of situations in which you can deduct your legal expenses from your income tax.

The most significant case where legal costs incurred can be tax deductible is in the cast of legal fees incurred to obtain child support or spousal support. This includes fees incurred in regards to obtaining an order for child or spousal support , fees paid in order to enforce an existing order for child or spousal support or... MORE »

If I receive a large payment of support arrears do I need to pay taxes?

Maybe, if the arrears are in regards to child support then it is never deductible by the payor. When receiving lump sum spousal support which represents an arrears of periodic payments you sometimes will need to pay taxes and this will depend on the judge. In situations in which a settlement payment has been made instead of the full amount, it is less likely that you will need to pay tax (more likely it will not be tax deductible to the payor).

However, another mechanism called income averaging may be available... MORE »