If an attorney took all of a settlement in a civil rights case who pays the taxes?

Settllement of $350,000 received nothing due to attorneys fees. Who pays the taxes?If an attorney took all of a settlement in a civil rights case who pays the taxes?
When you file, you must report the $350,000 as income, and should then deduct the $350,000 of attorney's fees as an expense of generating taxable income, leaving yourself with $0 of net taxable income and no tax due.





If you fail to report the income and claim the deduction, then the IRS may charge you tax on the $350,000.





When the attorney's taxes are filed, the attorney must report the $350,000 in attorney's fees, deduct the cost of office space, secretaries, and various other expenses, and pay tax on whatever is left.If an attorney took all of a settlement in a civil rights case who pays the taxes?
You BOTH do !





You`ll owe taxes on the $350,000 settlement ,and your lawyer will owe taxes on $350,000 income !





Sounds to me like you were ROBBED by your lawyer !!
Your legal fees are valid costs that are deductible against your settlement so there should be no net tax bill for you.





The relevant law on civil rights cases:





';Congress addressed this in American Jobs Creation Act of 2004 (AJCA) Section 703(a), adding new Sec. 62(a)(20), Costs involving discrimination suits, etc. This provision allows a deduction from gross income, not exceeding a gross judgment or settlement, for legal fees associated with judgments or settlements for a claim:鈥?quot;
You need to sue your lawyer - you totally got screwed. He should have received 25 - 33% at the most.