Can freelancers deduct tax preparation fees deductible?
Business Expensesfreelancersconsultantsindependent contractorssmall business ownerstax
Tax preparation fees are deductible for freelancers if the fees are directly related to the preparation of their business taxes. This means that if a portion of your tax preparation fee is attributable to your Schedule C (used for reporting business income and expenses), that portion can be deducted as a business expense. However, fees related to the preparation of personal taxes, such as those associated with Form 1040, are not deductible. For example, if a freelancer pays $1,000 for tax preparation and $600 of that is for business-related tax work, only the $600 is deductible. It's important to allocate the fees accurately between business and personal services.