Can I Write This Off?

Can I deduct are tax preparation fees deductible?

TL;DR

Tax preparation fees are generally not deductible for individuals due to the Tax Cuts and Jobs Act of 2017, but they remain deductible as a business expense for self-employed individuals, freelancers, and small business owners.

Detailed Answer

For individuals, the deduction for tax preparation fees was suspended from 2018 through 2025 under the Tax Cuts and Jobs Act. However, if you are self-employed, a freelancer, or a small business owner, you can deduct tax preparation fees as a business expense on your Schedule C. This includes fees for preparing the business portion of your tax return, as well as any fees for tax advice related to your business. For example, if you hire a tax professional to prepare your Schedule C, that portion of the fee is deductible. However, fees related to personal tax advice or preparation of personal tax forms are not deductible.

Where to Put It on the Tax Form

Schedule C, Line 17 (Legal and professional services)

Real World Example

A freelance graphic designer pays $600 to a tax professional to prepare their tax return. The professional charges $400 for the business portion (Schedule C) and $200 for the personal portion. The designer can deduct the $400 as a business expense on Schedule C, Line 17.

Audit Risk & Documentation Tips

The audit risk for deducting tax preparation fees is low if properly documented. Keep detailed invoices from your tax preparer that clearly separate business-related fees from personal fees. Maintain records of any correspondence or contracts with your tax professional that outline the services provided.

IRS Reference

IRS Publication 535, Business Expenses

Relevant Industries

FreelancersConsultantsSmall Business OwnersIndependent Contractors

Popular Related Pages

Disclaimer: This is for informational purposes only and should not be construed as tax or legal advice. Always consult your tax advisor.

Page created on July 15, 2025

Back to Search