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I had the unfortunate experience of taking my landlord to court. We eventually reached a settlement where I got some money. I strongly believe I should have gotten more and have evidence to support this. I accepted the settlement because legal fees were adding up and I didn't want to waste anymore time.

How would this affect my tax return? Are there any places where the money I spent on legal fees or money I got from the settlement should be recorded?

  • This may depend on factors not mentioned here - e.g. what's the subject of the lawsuit? If you did work for your landlord (e.g. maintenance) and the lawsuit resulted in you being paid for that work, then the money is (taxable) income from labor. – MSalters Nov 7 '19 at 12:10

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