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mtiede
Level 3

Why does TT Premier say it is deductible when it isn't?

From an IRS document:
 
Publication 529 (12/2020), Miscellaneous Deductions

Revised: December 2020

  Tax Preparation Fees

Tax preparation fees on the return for the year in which you pay them are a miscellaneous itemized deduction and can no longer be deducted. These fees include the cost of tax preparation software programs and tax publications. They also include any fee you paid for electronic filing of your return.

 

I highlighted a portion.

 

Whereas in the On Demand Tax Guidance in TurboTax Premier program says:

 

Which tax preparation fees are deductible?

Examples include payments made in 2020 for:

- Tax software (including TurboTax!)

- Tax return preparation fees (tax store, accountants, etc.)

- E-filing expenses

- Tax reference materials

- Representation at a tax audit or to appeal a tax deficiency

- Copying and postage for tax-related documents

- Transportation costs related to preparation expenses

 

 

Which is it?  I assume the guidance just needs updating and it is NOT deductible, correct?

1 Best answer

Accepted Solutions
AmyC
Expert Alumni

Why does TT Premier say it is deductible when it isn't?

NY does not follow federal guidelines. NY stayed with the old rules and tax preparation is a deductible expense. For the full list, see Itemized deductions - Department of Taxation and Finance

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3 Replies
CatinaT1
Expert Alumni

Why does TT Premier say it is deductible when it isn't?

It is not deductible on the federal level, however some states still allow the deduction.  The information entered in the federal portion of your return transfers to the state.  That is why it is still included in the program.

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mtiede
Level 3

Why does TT Premier say it is deductible when it isn't?

Ah, that makes sense.  Now how do I find out if New York allows the deduction?

AmyC
Expert Alumni

Why does TT Premier say it is deductible when it isn't?

NY does not follow federal guidelines. NY stayed with the old rules and tax preparation is a deductible expense. For the full list, see Itemized deductions - Department of Taxation and Finance

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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