Our News
Social Security Disability

Free Evaluation
6 minutes read

Can I Deduct Attorney Fees For Social Security Disability?

Published by GLmanage


Tax season is here again, and for those applying for Social Security Disability (SSD), understanding the tax implications is crucial. One common question that disability lawyers receive this time of year is, “Are attorney fees tax deductible for Social Security disability benefits?” The answer, in short, is yes. When you’re applying for SSD benefits, the cost of legal assistance can be part of your tax considerations.

These deductions are governed by specific IRS rules and can vary based on individual circumstances, making it essential to understand how they fit into the broader picture of your disability application process.

Other Items That Can Be Deducted During The Application Process

When you’re applying for Social Security Disability Insurance (SSDI) or dealing with long-term disability, tax season can bring up a lot of questions. It’s important to know about the different tax deductions that can help reduce your tax liability.

Medical Expenses:

Medical costs are a big part of living with a disability. If your medical expenses, like doctor visits, hospital fees, and prescriptions, are more than 7.5% of your adjusted gross income, you can deduct them from your tax return. This can be a big help, especially if you have ongoing medical needs.

Travel Expenses:

When you need to see doctors or go to the hospital, your travel costs, such as gas, bus fares, and parking fees, can add up. The good news is that these can be deducted. Just remember to keep a record of all these trips and costs.

Home Modifications:

If you have to make changes to your home because of your disability, like ramps or handrails, these expenses can be deducted. This makes it easier to afford the changes that make your home more accessible.

Special Equipment:

Equipment needed for your disability, like wheelchairs, hearing aids, or devices to help you communicate, can also be included in your deductions. These items are necessary for daily living and the IRS recognizes that.

Keep track of all these expenses. They can change your tax situation and lessen the financial burden during your SSDI application process.

Disability Tax Deductions: What Can Be Considered Once You’re Approved

After getting approved for disability benefits, there are different tax rules to consider:

Benefits Taxation:

Not all people with disabilities have to pay income taxes on their disability benefits. Whether your benefits are taxable depends on your income. If you’re filing jointly or have other income sources, you might have to pay taxes on part of your benefits.

Medical Deductions:

The medical expenses deduction still applies even after you’re approved for benefits. This is helpful if you continue to have high medical costs.

Disability Income Exclusions:

Some disability incomes, like certain Veterans Affairs (VA) disability benefits, aren’t taxed. This means you won’t include them in your taxable income, which is good news for your tax bill.

Considering Permanent and Total Disability:

If you have a permanent and total disability, there might be specific deductions or credits available. For example, if you’ve received a lump-sum SSDI payment, it’s important to understand how it affects your tax year. Some of these funds might be attributed to previous years and can impact your current tax return.

Understanding these deductions is crucial, but tax laws can be complex, especially when it comes to disability benefits and income. It’s often helpful to talk with a tax professional who knows about disability income and benefits. They can guide you on how to manage your tax return, considering your disability income and deductions.

Keeping accurate and detailed records is essential. It helps you and your tax professional figure out the best way to reduce your tax liability and take advantage of all possible deductions.

Can I Still Deduct Attorney Fees If I’m Denied For Disability Benefits?

Another common question that arises for many individuals applying for Social Security Disability Insurance (SSDI) is whether they can still deduct attorney fees on their tax return if their application for benefits is denied. The answer is not straightforward but important to understand.

It’s essential to know that attorney fees associated with the SSDI application process can be deductible, regardless of the outcome of your claim.

These fees fall under the umbrella of miscellaneous itemized deductions on your tax return. However, there are some additional considerations to be aware of:

Itemized Deductions: You must itemize your deductions to take advantage of this. This is crucial because if taking the standard deduction is more beneficial for your tax situation, you might not benefit from itemizing and claiming the attorney fees.

Documentation: Regardless of the outcome of your SSDI claim, maintaining detailed records of all attorney fees and related expenses is vital. This documentation will be necessary if you decide to itemize these costs on your tax return.

Seeking Professional Advice: Given the complexities of tax laws, especially when dealing with denied disability claims and associated costs, consulting a tax professional is highly advisable. They can provide personalized advice based on your specific financial situation and ensure you’re making the most beneficial decisions on your tax return.

Schedule A Case Consultation With The Law Office Of Gerard Lynch

Navigating the complexities of Social Security Disability, especially when it comes to legal fees and tax deductions, can be overwhelming. That’s where The Law Office of Gerard Lynch comes in.

We offer detailed guidance through every step of your SSD claim, including understanding the tax implications of your benefits and attorney fees. Schedule a free consultation with us today to ensure that you are making informed decisions and maximizing your benefits.

Let us help you ease the burdens of both your disability claim and tax season.

Client Testimonials


This case was my first time hiring a lawyer but I am glad that the attorney I chose worked diligently with me to help me get the results I was looking for. I am confident in letting the law offices of Gerard Lynch handle my business when needed, and I will be contacting this office when or is there is another matter that I need handled. I, Alexander Foster, am very satisfied with the outcome of my case. The Law Office of Gerard Lynch and I worked together and we achieved the goal that we were striving for. I am so thankful.

Alexander Foster,

The best and foremost compliment I can give this firm is the fact that I didn't have to come in to the office and overall my case was handled very expeditiously. Thanks for a job well done on my behalf.

Kathy Brown,

We need more lawyers like Mr. Lynch with an understanding heart and mind. May God bless you and your staff. I enjoyed working with Mr. Lynch and thank you so very much.

M. Robertson,

Frequently Asked Questions

Do I have to be disabled permanently to receive Social Security Disability (SSD)?

No you do not. A claimant needs to be disabled for at least 12 months or have a medical condition that is terminal or expected to lead to death. Sometimes a claimant is not disabled permanently but has a certain time frame in which they are disabled from working. For example, a claimant may get into a car accident, need to have multiple surgeries and is out of work for at least one year. That claimant can receive benefits for the period before he or she returned back to work.

It is possible but rare. In a SSD case, medical records are your evidence and that is the proof you have to show the SSA and an social security judge that you do have a severe medical condition that keeps you from working. If you do not have recent medical records, it is much harder to win a case. There is a possibility, though not common, that your case might be approved simply by going to a consultative exam that SSA sends you to, where a doctor gives you a physical or mental examination.

One benefit of working with our office is that we will look carefully at your case and if you do not have enough or current medical records, we can often give you information about low-income or indigent health services where you can go and get medical treatment for free or greatly reduced cost.

Our law firm, the Law Office of Gerard Lynch, only charges our clients if we win their SSD or Supplemental Security Income (SSI) benefits. We charge on a contingency basis, 25% of the backpay, a cap of up to $6000, awarded to a claimant when we win the case. The fees are regulated by the Social Security Administration (SSA). If we do not win their case, we do not charge anything no matter how much work we have done. Once a client wins and their monthly checks begin, they will keep 100% of their checks.

Social Security Disability (SSD) comes from FICA taxes that are deducted from paychecks during the work history of a person. Every month that a person works and reports income to the government, taxes are deducted which are paid into social security. When FICA taxes are taken out of paychecks, most of it goes into the social security retirement fund. However, a smaller portion goes into the social security disability fund. People who become disabled over their lifetime and are not yet eligible to get their full age retirement benefits can get benefits from the disability fund. One difference between Social Security Disability (SSD) and Supplemental Security Income (SSI) is that Social Security Disability (SSD) is like social security retirement – it does not matter how much money a person has or how many assets they have.

Supplemental Security Income (SSI) is a different program for disabled people and it is like a form of welfare. Like food stamps, if you have too much money, assets or property, then you will be ineligible for Supplemental Security Income (SSI) even if you are clearly disabled. Supplemental Security Income (SSI) is for people who are either too young to have paid enough into the system or have not worked recently enough to receive Social Security Disability (SSD). The benefits given to Supplemental Security Income (SSI) claimants come from the general US government fund. To receive Supplemental Security Income (SSI), a claimant has to be equally disabled to a person who receives Social Security Disability (SSD) – the standard for determining disability are the same. The only difference in deciding which claimant receives Social Security Disability (SSD) or Supplemental Security Income (SSI) comes from the amount of money paid into the social security system over one’s lifetime.