Attorney Fees for SS Disability

[Consultant]

Client has $7,200.00 of Attorney Fees deducted from his SS Benefits for 2023. 2022 included.
My research turns up nothing to deduct from Box 5 Benefits. Am I correct to state no deduction?
My Software and IRS Pubs do not address this item. Hence, no above the line item?

[Rapid Robert]

Not deductible. See Pub 529, search for term "legal".

[FEDUKE404]

How does Soc Sec Admin get involved in paying "attorney fees" ? ? ? Contingency fees maybe?
I assume the 2023 Form SSA-1099 shows the GROSS benefits in Box 5 ?

[kathyc2]

How does Soc Sec Admin get involved in paying "attorney fees" ? ? ? Contingency fees maybe?
I assume the 2023 Form SSA-1099 shows the GROSS benefits in Box 5 ?

Under sections 206(a) and 1631(d)(2) of the Social Security Act and sections 302 and 303 of the Social Security Protection Act (SSPA) of 2004 (Pub. L. No. 108-203), SSA has the authority and responsibility to determine the maximum fees that claimants’ representatives may charge and collect from claimants they represent before SSA, and to directly pay those fees out of claimants’ past-due benefits to attorney and EDPNA representatives. SSA is also responsible to directly pay fees awarded to an attorney by a Federal court under sections 206(b) and 1631(d)(2) of the Act.

https://www.ssa.gov/privacy/pia/Attorney%20Fee%20Form%201099-MISC%20Reporting.PIA.htm

Fees used to be deductible as a 2% misc deduction until that went away.

[FEDUKE404]

Under sections 206(a) and 1631(d)(2) of the Social Security Act and sections 302 and 303 of the Social Security Protection Act (SSPA) of 2004 (Pub. L. No. 108-203), SSA has the authority and responsibility to determine the maximum fees that claimants’ representatives may charge and collect from claimants they represent before SSA, and to directly pay those fees out of claimants’ past-due benefits to attorney and EDPNA representatives. SSA is also responsible to directly pay fees awarded to an attorney by a Federal court under sections 206(b) and 1631(d)(2) of the Act.

https://www.ssa.gov/privacy/pia/Attorney%20Fee%20Form%201099-MISC%20Reporting.PIA.htm

Fees used to be deductible as a 2% misc deduction until that went away.

Way too much info, but thanks.
I guess I should feel proud I successfully filed Soc Sec disability paperwork for my spouse without paying any attorney fees. At the time I had two children in high school, and they were pleased to get some significant retroactive funds and then more up to graduation.
Lots of paperwork, but I managed and did not have to resubmit any forms after the original paperwork.
For my 2? worth, even though "allowable" lawyer fees were paid. . .$7,200 seems like a lot of coinage.

[New York Enrolled Agent]

Fees used to be deductible as a 2% misc deduction until that went away.

Yes - but only to the proportional extent that the SS was taxable - see Rev Ruling 87-102.