How to Deduct Tax Consultation Fees From Taxes

If you've had to use the services of a tax consultant to help you understand or prepare your taxes, you can deduct the consultation fee from your taxes through filing an itemized tax return. Here's how to go about deducting the tax consultation fee from your taxes.

Instructions

Difficulty: Moderately Challenging

1. Save your receipts. In order to deduct the tax consultation fee from your taxes, you have to report the fee amount accurately. Having the receipt not only ensures that you are reporting the correct amount; it will serve as backup documentation if the IRS ever audits your taxes.
2. File an itemized tax return. In order to benefit by deducting the consultation fees, you must file an itemized tax return (schedule A). Filing the 1040-EZ form will not allow you to take deductions. It may take a little longer to file using the itemized deduction form schedule A, but it is worth it in the end.
3. Prepare your taxes. Whether you use an accountant or prepare your taxes yourself by using tax preparation software, follow the instructions and insert the tax consultation fee on the appropriate line to claim the deduction.
4. Submit your taxes before the tax due date. Although submitting your taxes after the tax due date will may still entitle you to the deduction, any money you might have saved by taking deductions will be given back to the government through interest charges and late filing fees. Therefore, it is important to file your taxes on time.