Scenario: TP was let go in 2016 and sued their former employer for discrimination and won, former employer paid the following in 2018: Back wages  $70,000 on a W2 Non-wages $69,000 on a 1099 Legal Fee $70,000 paid to attorney + $20,000 paid out of pocket = $90,000 Legal Expenses (Pub 529) Legal expenses that you incur in attempting to produce or collect taxable income or that you pay in connection with the determination, collection, or refund of any tax are miscella