(2020 Tax Year) TurboTax charge fees for self employment. Can the fees be added as expenses for 2020 while being paid in 2021?

For clarity: Assume you file your 2020 taxes, and TurboTax fees are $100. Being that it is 2021, do you add these fees as expenses on the 2020 return or 2021?

386

Level 15

Mar 12, 2021 5:08:05 AM

put your tax prep fees, if you can deduct them, on 2021.

Did you use TurboTax last year ??

Level 2

Mar 12, 2021 7:58:37 AM

I used the online Turbo Tax in 2019 and 2020. I have already filed 2020, but I didn't include the fees. Thanks, I will include on 2021 return.

Level 10

Mar 15, 2021 11:37:36 AM

You deduct tax preparation fees on the taxes for the year in which you paid the fees, no matter what year it was for. So you will deduct the fees paid in 2021 on your 2021 income tax return.

You are correct to add them to the 2021 return.

Self-employment Business Expenses

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(2020 Tax Year) TurboTax charge fees for self employment. Can the fees be added as expenses for 2020 while being paid in 2021?