Self employed tax prep fee deduction

3 replies
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The miscelleneous 2% threshold is rather interesting to reach. I would say my supplies, office expenses, meals, etc are all miscellenous but apparently the IRS doesn’t think so. However, as a self employed person, doing my own taxes, why can’t I put the TURBO Tax software and Audit Defense under “other miscellenous expenses” for Schedule C vs. under personal?

TurboTax Home & Biz Mac

Answer

You can indeed put a portion of your tax return preparation fees under Schedule C but can only include the total fees if you have no other form of income. The fees are what you paid in 2016, not 2017.

The 2% threshold for Miscellaneous expenses doesn't have anything at all to do with Self-Employed expenses. The miscellaneous expenses you're talking about are for job-related expenses, meaning income for which you receive a W-2. Self-Employment expenses are entered as part of your Schedule C interview and the expenses are listed under each category such as Supplies and Office expenses. You're mixing apples and oranges.

Anonymous

Answer

Asta

Level 3

i am in the situation. In your post, you mention that you can indeed put a portion of your tax return preparation fees under schedule C. How much is that. For example, i am making 3k from my regular job and also making 8k from doing doordash. The total cost of getting my tax done is between 200 - 300. Let be specific, let's say it is 200. Do you think that i should put 50% of under schedule C? what is your thought? can you please shed some light?

SusanY1

Alumni - Intuit

It should be in proportion to the income, generally. With the numbers given you would be able to claim around 72% of the fee as business expense, or $144.

@Asta

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