Are tax preparation fees deductible?

For Federal returns, according to the IRS, the Tax Cuts and Jobs Act (TCJA) signed into law on December 22, 2017, eliminated the deduction for tax preparation fees for most taxpayers in the tax years 2018 through 2025.

The IRS specifies, "unless you're self-employed, tax preparation fees are no longer deductible in tax years 2018 through 2025 due to the Tax Cuts and Jobs Act (TCJA) that Congress signed into law on December 22, 2017.

Self-employed taxpayers can still write off their tax prep fees as a business expense. Therefore, self-employed individuals may continue to claim tax preparation fees as a deductible business expense.

NOTE: Every state has different rules. In California your costs may be considered miscellaneous itemized deduction.

It's important to note that tax laws can change, and individual circumstances vary. Therefore, it's advisable to consult with a tax professional who can refer to the latest IRS guidelines to understand the specific rules and limitations regarding deductions. Keep records of your tax preparation fees and discuss their deductibility with your tax preparer during your tax consultation.