Question

Can I deduct the turbo tax program and audit defense subscription off my schedule C?

Forum|Forum|5 years ago
June 28, 2020
1 reply
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Normally if you use an accountant, you can deduct their charge for preparing your schedule C off next year's schedule C. But how do I do that with my purchase of the TurboTax program? Can I write that off my schedule C?

Likewise, can I deduct my purchase of Audit Defense last year off this year's Schedule C?

rjs

Employee

If the accountant gives you a statement showing a separate charge just for Schedule C you can deduct that as a business expense. But with TurboTax and Audit Defense you pay one combined price for both the personal and business portions of your tax return. There is no breakdown of how much is for the business, so you have no basis for claiming a business expense deduction.

Hal_Al

Employee

I'm of the opinion that you can deduct the "up charge" on Schedule C. If TurboTax Deluxe was adequate to handle your personal taxes, but you needed to upgrade to TT Self Employment because of your business, you may deduct the rice difference on Schedule C.

If the primary reason for purchasing Audit Defense was the business return, you can deduct that cost too. If there is anything complex about your personal taxes, you my want to only deduct a portion of the Audit defense cost.