Discussion:SSA-1099 BOX 5-ATTORNEY FEE
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| Revision as of 04:31, 3 April 2008 Marty's mobile tax (Talk | contribs) (New Discussion) ← Previous diff |
Revision as of 04:38, 3 April 2008 Taxwizard (Talk | contribs) (The answer is th) Next diff → |
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| {{ForumNewPost|UserID=Marty's mobile tax|Date=3 April 2008|Text= I have client who received a lump-sum payment of social security in 2005 (just now filing). Part of the box 5 is for attorney fees. Her benefit will be partly taxable. My question is do I deduct the attorney fees from the box 5 net benefits so it won't be taxed? Obviously it was taxed once already, but will this cause the IRS to mail a letter questioning the amount of taxable social security? }} | {{ForumNewPost|UserID=Marty's mobile tax|Date=3 April 2008|Text= I have client who received a lump-sum payment of social security in 2005 (just now filing). Part of the box 5 is for attorney fees. Her benefit will be partly taxable. My question is do I deduct the attorney fees from the box 5 net benefits so it won't be taxed? Obviously it was taxed once already, but will this cause the IRS to mail a letter questioning the amount of taxable social security? }} | ||
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| + | {{ForumReplyPost|UserID=Taxwizard|Date=3 April 2008|Text=The answer is that the deductible portion of the attorney fee is not deducted directly from the benefit. Instead, it is deducted on Sch. A.}} | ||
Revision as of 04:38, 3 April 2008
Discussion Forum Index --> Basic Tax Questions --> SSA-1099 BOX 5-ATTORNEY FEE
Discussion Forum Index --> Tax Questions --> SSA-1099 BOX 5-ATTORNEY FEE
Marty's mobile tax (talk|edits) said: | 3 April 2008 |
| I have client who received a lump-sum payment of social security in 2005 (just now filing). Part of the box 5 is for attorney fees. Her benefit will be partly taxable. My question is do I deduct the attorney fees from the box 5 net benefits so it won't be taxed? Obviously it was taxed once already, but will this cause the IRS to mail a letter questioning the amount of taxable social security? | |
| 3 April 2008 | |
| The answer is that the deductible portion of the attorney fee is not deducted directly from the benefit. Instead, it is deducted on Sch. A. | |
