How to Deduct Fees for Tax Consultation From Your Taxes

If you employed the services of a tax consultant last year, you can deduct the consultation fees from your taxes. The Internal Revenue Service allows you to deduct the cost of tax consultation as long as you follow the rules.

Difficulty: Moderate

Instructions

1. 
   Tax Preparation

   Keep a copy of the tax consultation receipts. The trick with tax deductions is to make sure they are legitimate and have documented proof of the deduction. Tax consultation receipts are no different. Make sure you organize your receipts to make it easer to locate for the next year’s tax consultation.

2. 
   Taxes

   Itemize your tax return. As with any deduction above and beyond the standard deductions, you must file an itemized tax return to receive the credit. You cannot file form 1040EZ if you wish to take non-standardized deductions.

3. 
   Taxes

   Have your taxes prepared and be sure to list the tax consultation fees on the itemized list. If you use software such as Turbo Tax or Tax Cut, the software prompts you to insert your individual deductions.

4. File your taxes by the April 15h tax due date. If for some reason you are not able to meet the tax deadline, be sure to file for a tax filing extension in advance of the due date. Be forewarned, however, that an extension to file your taxes is not an extension for paying your taxes. You must pay by April 15th or you’ll be charged penalties and interest on the amount due.

Tips & Warnings

• Deduct the tax consultation fees for the year in which the taxes are due. Current year’s tax consultation fees will be deducted when you file your taxes next year.

Resources

• Filing a Tax Extension

[mamavic]

on 2/16/2009 I wasn't sure if I could this, but will make sure to do this next year. Thanks for the advice.

[awritermom]

on 2/1/2009 Excellent tips, especially for those preparers that need help from a tax consultant.