Can I Write This Off?

turbotax fees

TL;DR

TurboTax fees are generally deductible as a miscellaneous expense if incurred for business purposes, but not if used solely for personal tax filing.

Detailed Answer

TurboTax fees can be deducted if the software is used to prepare business tax returns, such as for a sole proprietorship (Schedule C), partnership, or corporation. These fees are considered a business expense. However, if TurboTax is used solely for preparing personal tax returns, the cost is not deductible. For mixed-use (e.g., both personal and business returns), only the portion attributable to business use is deductible. For example, if 60% of the software's use is for business purposes, then 60% of the cost can be deducted. It's important to allocate the cost accurately and keep records supporting the business use percentage.

Where to Put It on the Tax Form

Schedule C, Line 17 (Legal and Professional Services) for sole proprietors. For partnerships or corporations, it would be included in the general deductions section of the respective tax form.

Real World Example

A freelance graphic designer uses TurboTax to file both personal and business taxes. The software costs $120, and she estimates that 70% of its use is for business purposes. Therefore, she deducts $84 (70% of $120) on her Schedule C.

Calculation Required

A calculation is required for this deduction.

Calculate the deductible portion by determining the percentage of business use. Multiply the total cost of TurboTax by this percentage to find the deductible amount.

Audit Risk & Documentation Tips

Audit risk is moderate. Keep a copy of the TurboTax receipt and a log or notes detailing how you determined the business use percentage. Document the time spent on business versus personal tax preparation to support your allocation.

IRS Reference

IRS Pub 535, Business Expenses

Relevant Industries

FreelancersConsultantsSmall Business OwnersIndependent Contractors

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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 March 1, 2026

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