Can I Deduct Tax Preparation Fees?
Tax preparation fees can be a concern for many taxpayers trying to maximize their deductions. Under the Tax Cuts and Jobs Act (TCJA) enacted in 2017, the ability to deduct tax preparation fees has changed significantly.
Personal Tax Preparation Fees
For individuals who itemize deductions, tax preparation fees were previously deductible as a miscellaneous itemized deduction. However, the TCJA suspended these deductions for tax years 2018 through 2025. Consequently, personal taxpayers cannot currently deduct the fees paid to prepare their taxes.
Business Tax Preparation Fees
If you are self-employed or own a business, the rules differ. Business tax preparation fees may still be deductible as a necessary expense of running your business. These costs can be claimed directly on your Schedule C or appropriate business tax form.
Conclusion
In summary, while individuals cannot deduct personal tax preparation fees during the current tax period, self-employed individuals and business owners can still benefit from these deductions. Always consult with a tax professional for personalized advice and to remain updated on tax law changes.