# Tax question



## mlappin (Jun 25, 2009)

If I can get this figured out I'm going to file an amended return. I just thought about posting here after reading rj's post. http://www.haytalk.com/forums/t5728/

Long and short of it is after having to hire a lawyer to get Tammy's disability we received two years worth of back disability in one lump sum which put us over the limit so her back disability was taxable. Social Security paid the lawyer out of her check before we ever received it, but are still saying it's income which technically I guess it is, but I'd think somewhere that 5K in lawyers fees ought to be deductible. If SS weren't such turds about the whole thing and we didn't have to have a lawyer, then it would have been what I consider to be income as _we_ could have used it to pay other bills.


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## NewBerlinBaler (May 30, 2011)

I'm not a CPA but I think I know the answer to this one. If you had to hire a lawyer to go after a deadbeat customer that didn't pay his/her hay bill, you could deduct those legal fees as a business expense. However, in your case, the lawyer helped you collect personal income so the legal fees must be paid with after-tax dollars.


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## urednecku (Oct 18, 2010)

Who knows with the IRS, they'll take any they can get----from the working people.







(Don't wanna get started on that one)









I think it was off this forum somebody posted something about an article this tax lawyer wrote, I bookmarked his site for future ref. Might have something on his site that would help.

Good luck, hope ya get it back!!


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## mlappin (Jun 25, 2009)

Anybody ever try the income averaging? I think it save me a bundle, but in that case their has to be a catch somewhere.


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## Nitram (Apr 2, 2011)

Tell me more!!! Had not heard of it...


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## urednecku (Oct 18, 2010)

Income averaging? I haven't heard of it either. Like Nitram said, TELL US MORE!!!


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## mlappin (Jun 25, 2009)

Farm Income Averaging - Agriculture Tax Tips

http://www.irs.gov/pub/irs-pdf/i1040sj.pdf


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## urednecku (Oct 18, 2010)

Thanks, mlappin. I'll possible need this for the '12 tax year. I'll sure keep it in mind!


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## steve IN (Jan 13, 2010)

I used income averaging a few years back. If I remember right you can bring income forward in a loss year or bring a loss forward in a good year. I think , and please I am not an accountant I only play one on the internet so see a real one, it has to happen in a three year period. Hope this helps. As for the lawyer expense I thought all legal fees were deductible. Good luck


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