Yes. In October 2004, a provision ending double taxation of attorneys' fees in employment discrimination, civil rights and other cases regulating employment was passed as part of the America Jobs Creation Act of 2004. The law allows employees who have received a settlement or award to deduct the portion of the award paid to the attorney as attorneys' fees as an above-the-line deduction of attorneys' fees This means that payments will not be subject to the Alternative Minimum Tax or to the 2% floor on miscellaneous deductions, which caused employees to pay taxes on portions of the award that they did not receive - which went to their attorneys instead. It applies to settlements and awards made, and fees and costs paid, after the date of enactment.