Legal fees on a settlement

[Blaire]

My client received a settlement from a stock broker, issued to them a 1099 and stated it was reimbursement of premiums. The client never took the investment expense deduction on the schedule a in the past. We are obviously reporting the 1099 as other income. My question is, can we net the income with the legal fees that the client incurred to receive the settlement?

[Uncle Sam]

Premiums/Stock Broker? A stockbroker doesn't sell insurance.
If what you are talking about is reimbursement of investment advisory fees charged on a brokerage account for a non-IRA account - which upon until 2017 were Miscellaneous Itemized Deductions, that would be the place to reduce the deduction taken if there were any for the current year.
If you are talking about a 2018 tax return the answer is no since the entire Miscellaneous Itemized Deduction section of Schedule A has been eliminated from the 2017 TCJA.

[TAXNJ]

Have you looked at The Tax Book 3-17 & 4-26

[New York Enrolled Agent]

My question is, can we net the income with the legal fees that the client incurred to receive the settlement?

You should read Commissioner v Banks 543 U.S. 426 (2005) and IRC §62(a)(20)

[TAXNJ]

You should read Commissioner v Banks 543 U.S. 426 (2005) and IRC §62(a)(20)

Good reply. That should provide the answer for this post.