Yes; the cost of any TurboTax software you used to complete your tax return does indeed count toward the itemized deduction known as tax preparation fees. It doesn't matter for purposes of this answer if the charge to you was actually $40, $60, or $120. There is no minimum or maximum here, for IRS purposes. This deduction is designed to capture the actual cost of tax preparation, planning, and advice. So, if you paid a CPA firm $600 to prepare your return and talk about next year's tax strategy, or you did it all yourself by using TurboTax software for $60, then the principle (or spirit) of the deduction is the same, even if the dollar amounts are different.
It is also important to keep in mind here that you (or anyone
claiming this deduction) may or may not actually see any net tax benefit from
including these items on your tax return. The reason for this is that you
must have enough itemized deductions (in total) to exceed the standard
deduction available to all taxpayers. Since more than 2 in 3 taxpayers do
not, most people end up taking the (more valuable) standard deduction, rather
than itemizing deductions. If you input all your data carefully, however,
the TurboTax software will make that determination for you.
Thank you for asking this question.
