Legal fees to collect disability pension

A client paid a lawyer over 8K to follow up on a denial Service Canada for a disability pension plan and for all the professional services rendered. The client won the case and received over 26 k in 2021 disability benefits.
Can the client claim all legal fees paid?
As per CRA site line 23200,

Line 23200 – Other deductions: Legal fees

You can claim the following expenses:

  • fees including any related accounting fees you paid:
    • for advice or assistance to respond to the CRA when the CRA reviewed your income, deductions, or credits for a year
    • to object or appeal an assessment or decision under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan, or the Quebec Pension Plan
  • fees that you paid to collect (or establish a right to) a retiring allowance or pension benefit. You can claim only up to the retiring allowance or pension income you received in the year minus any part of these amounts transferred to a registered retirement savings plan (RRSP) or registered pension plan (RRP). You can carry forward the legal fees you cannot claim in the year for up to seven years

I had the same scenario this past year and that was my understanding.

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Did you claim the lawyer’s fee?

Yes. Around $ 15,000 in my case.

Was expecting a review but surprisingly none so far.

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Thank you.

Don’t see why not…the amount received was taxable, so the fees are deductible. Same as a salary award.

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Review in online mail this morning.

They must be monitoring this forum. :grinning:

I guess so. :smiley: