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Will my TurboTax tax preparation fees be automatically entered as deductions into my federal and State tax returns?

 
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3 Replies
AnnetteB6
Expert Alumni

Will my TurboTax tax preparation fees be automatically entered as deductions into my federal and State tax returns?

No, they will not be automatically entered.  The tax preparation fee is no longer deductible on your Federal return due to the Tax Cuts and Jobs Act.  

 

Take a look at the following TurboTax article for more information:  Can I claim tax prep fees as a deduction?

 

 

@rfah

 

 

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Will my TurboTax tax preparation fees be automatically entered as deductions into my federal and State tax returns?

Does this mean I WILL FOR SURE BE GETTING THE STIMULUS DIRECT DEPOSIT 

Screenshot_20200417-234109_Chrome.jpg

 

DRF2
New Member

Will my TurboTax tax preparation fees be automatically entered as deductions into my federal and State tax returns?

This is NOT a complete answer.  Yes, Tax prep fees are no longer deductible on Federal Tax form but may be deductible on the state tax form.  When I was preparing my federal tax, the area for entry of tax prep is gray and does not allow an entry.  There is a note for considering possible entry of the tax prep fees in the state tax form which is most likely in the area which has the 2% limitation.  The TurboTax AL State tax does not provide the step-by-step guidance as offered in the Federal Form.   I would suggest TurboTax would consider consider allowing entry of tax prep fees in the Federal Form with transfer to the State Form and then notifying the preparer this deduction is NOT allowed on the Federal but may be allowed on the state.  This is would be  better method.  Do you agree?  Where would TurboTax check these line entries on the State 2% limit area to make sure it is allowed?                         

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