Tax return preparation fees are no longer deductible on Schedule A, thanks to the 2017 tax reform law, which axed all miscellaneous itemized deductions that were previously subject to the 2%-of-adjusted-gross-income threshold. But if you file Schedule C, E or F, you can still write off part of the cost. IRS said in a 1992 revenue ruling that tax return preparation expenses incurred in preparing Schedules C (sole proprietors), E (rentals and royalties) or F (farmers) are deductible in calculating AGI…meaning they are above-the-line deductions. Taxpayers filing these schedules should thus be able to claim an allocable portion of their total tax return preparation expenses on the corresponding schedule.

Tax return preparation fees

by | Mar 21, 2019 | 1099-C, Business Taxpayers, Form 4684, IRS, Schedule E, Tax Cuts, Tax Procedure | 0 comments