Yes, you can deduct the tax preparation fee in two different ways.
- Deduct the fee as a miscellaneous expense on schedule A - Itemized deductions. Please see more information in the FAQ's below.
OR
- If applicable, deduct the fee as a business expense on schedule C - profit or loss from business, line 17 - legal and professional services. For more information please see instructions for line 17 here: https://www.irs.gov/pub/irs-pdf/i1040sc.pdf
Assuming you are using the cash method of accounting, your expenses will be deductible in the year the actual payment is made.
For more information on accounting periods and methods, please visit this IRS publication: https://www.irs.gov/publications/p538
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