Taxing Settlements and Judgments – Are Attorneys’ fees paid included in income to litigant?

Posted Posted in Civil Rights

Are attorneys’ fees paid from a settlement included in the gross income to the plaintiff – are they “above-the-line deduction”, merely listed as itemized deductions, “below-the-line deduction” where they may be disregarded in an alternative minimum tax analysis, or not deductible at all?   The tax answers depend upon the nature of the legal fees.  […]