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Level 1

Are Turbo Tax software purchases tax deductible?

I thought that TT was a deductible expense, but last year my husband did not seem to find a way to claim it. Just wondered if we missed some step that might make it work since we just laid out $81.44 for this year's software.

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Level 20

Are Turbo Tax software purchases tax deductible?

You can deduct the Turbo Tax cost or any tax preparation fees you actually paid in on your tax return no matter what year it is for. But it is a Misc Deduction and only the amount OVER 2% of your AGI is deductible so it might not be worth putting it in.  So if you paid $50 in fees your income would have to be less than $2,500 to be able to deduct any of it and then only a portion of it is deductible.  And then the total of all your deductions has to be more than the standard deduction to give you any benefit.
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Level 20

Are Turbo Tax software purchases tax deductible?

You can deduct the Turbo Tax cost or any tax preparation fees you actually paid in on your tax return no matter what year it is for. But it is a Misc Deduction and only the amount OVER 2% of your AGI is deductible so it might not be worth putting it in.  So if you paid $50 in fees your income would have to be less than $2,500 to be able to deduct any of it and then only a portion of it is deductible.  And then the total of all your deductions has to be more than the standard deduction to give you any benefit.
Level 1

Are Turbo Tax software purchases tax deductible?

Thanks for this extra clarification. Very helpful!
Level 20

Are Turbo Tax software purchases tax deductible?

So to be able to deduct any of the 81.44 your income AGI would have to be LESS than $4,072.
Level 1

Are Turbo Tax software purchases tax deductible?

No
Level 20

Are Turbo Tax software purchases tax deductible?

Wrong.
Level 7

Are Turbo Tax software purchases tax deductible?

Also note that this deduction is for 2017 and earlier, not 2018. See https://www.irs.gov/pub/irs-pdf/p529.pdf

Level 20

Are Turbo Tax software purchases tax deductible?

If you purchased and paid for TurboTax 2018, in 2019, then if it qualifies it would be a deductible expense on your 2019 return. Remember, income & expenses are reported/taxable/deductible in the tax year the monetary transaction physically occured. It flat out does not matter what tax year the transaction may have been *for*.

But for most, since itemized deductions make absolutely no difference to your tax liability until the total of all of your itemzed deductions exceed your standard deducting, itemizing really makes no sense for more than 90% of your "typical" tax filers.