If you paid someone to prepare your tax return, you may wonder whether those fees can lower your tax bill. For most taxpayers, the answer is no.
The Tax Cuts and Jobs Act (TCJA) suspended miscellaneous itemized deductions that were subject to the 2% adjusted gross income (AGI) limit, including tax preparation fees. The One Big Beautiful Bill Act (OBBBA) later made that suspension permanent, which means tax preparation fees can no longer be claimed as an itemized deduction on your federal individual income tax return.
What if I'm Self-Employed?
If you're self-employed, tax preparation fees related to your business may still be deductible as a business expense.
For example, if you file a Schedule C for freelance, contractor, or small business income, you can generally deduct the portion of your tax preparation fees that relates to your business return. Instead of claiming the expense as an itemized deduction, you'll report it as an ordinary business expense on your Schedule C.