Yes, It's Tax Deductible, but...
My tax fiefdom
Over the years, several clients have called me after receiving and reviewing their finished return to tell me, "You forgot to deduct your fee on my Schedule A".
Fees paid for preparing income tax returns are deductible as a miscellaneous expense on Schedule A. But the total of your allowable miscellaneous expenses must be reduced by 2% of your adjusted gross income. If 2% of AGI is more than your total allowable miscellaneous expenses you do not get a tax deduction.
What I do now to avoid this comment is list my tax preparation fee on the appropriate line on all Schedule As, along with any other miscellaneous expenses, and subtract the 2% of AGI to show that "0" is allowable.
The tax man isn't the only service provider in your life who isn't quite as deductible as you might think he is.
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