Valentine’s Day a Bust? Here’s Good News

From the Boston Herald’s TaxSmart advice column:

If roses weren’t enough to make your marriage happy yesterday, Norwood CPA Robert S. Fineman tackles this thorny post-Valentine’s Day tax question.

Can divorce-related legal fees be tax deductible? If yes, how and when?

Attorney M.C.

That’s a great question that is asked very often.  Any form of tax related legal fees are tax deductible in the year paid.  This would include tax advice and planning related to divorce proceedings.

It is very important that this amount be itemized separately on the invoice from the law firm in order to clearly back up the deduction taken on the tax return.

The deductible fees should be reported on Schedule A (itemized deductions), under Miscellaneous Deductions.  Miscellaneous deductions are deductible after 2% of Adjusted Gross Income is deducted from the total of miscellaneous deductions.

-Robert S. Fineman, CPA