Can you deduct the turbotax state efile fees ($34.95) under Tax Preparation Expenses?

[SweetieJean]

You have to have paid them in 2017 io deduct them on your 2017 return.

[LauraVF]

Yes, you can deduct the tax preparation fee in two different ways.

1. Deduct the fee as a miscellaneous expense on schedule A - Itemized deductions. Please see more information in the FAQ's below.
   
   OR
   
   
2.  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

https://ttlc.intuit.com/replies/4186196

https://ttlc.intuit.com/replies/5766770

[mjh5]

Thanks. To clarify, is the TurboTax $34.95 state efile fee I paid for filing my 2016 taxes in April 2017 deductible on my 2017 federal taxes?

[LauraVF]

Absolutely, the e-file fee you paid for 2016 is deductible in your 2017 income tax return.

Assuming you are using the cash method of accounting, your expenses will be deductible in the year the actual payment is made, which in your case was 2017.

For more information on accounting periods and methods, please visit this IRS publication: <a rel="nofollow" target="_blank" href="https://www.irs.gov/publications/p538">https://www.irs.gov/publications/p538</a>