Can I Write This Off?

Can I write off tax preparation fees?

TL;DR

Tax preparation fees are not deductible for individual taxpayers under current tax law.

Detailed Answer

As of the Tax Cuts and Jobs Act of 2017, individuals cannot deduct tax preparation fees as a miscellaneous itemized deduction. However, if you are self-employed, you may deduct the portion of tax preparation fees related to your business on Schedule C. For example, if your tax preparer charges you $500 and estimates that 30% of the work was related to your business, you can deduct $150 as a business expense.

Where to Put It on the Tax Form

For self-employed individuals, report on Schedule C, Line 17 as a legal and professional service expense.

Real World Example

A freelance graphic designer pays $600 for tax preparation services. The preparer estimates that 40% of the work is related to the business. The designer can deduct $240 on Schedule C as a business expense.

Calculation Required

A calculation is required for this deduction.

Determine the percentage of tax preparation fees related to business activities and multiply by the total fee. For example, if 40% of a $600 fee is business-related, the deductible amount is 0.40 * $600 = $240.

Audit Risk & Documentation Tips

Keep a detailed invoice from your tax preparer that breaks down the services provided and the portion related to business activities. This documentation will be helpful in case of an audit to substantiate your deduction.

IRS Reference

IRS Publication 529, Miscellaneous Deductions

Relevant Industries

FreelancersSmall BusinessSelf-Employed

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 7, 2025

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