Question

Why can't I deduct my cost of turbo tax last year? I was never asked/prompted for that.

Forum|Forum|5 years ago
March 9, 2021
2 replies
0 views

Why can't I deduct the amount we paid Turbo Tax for 2020.

TurboTax Premier Online

Employee

Because the TCJA (Tax Cuts and Jobs Act) by Congress eliminated that deduction for 2019-2025.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

DawnC

Employee

It is a miscellaneous itemized deduction that is no longer deductible. It wasn't deductible last year either.

The law suspends the deduction for job-related expenses or other miscellaneous itemized deductions that exceed 2 percent of adjusted gross income.

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.

Prior to 2018, taxpayers who weren’t self-employed were allowed to claim tax prep fees as a 2% miscellaneous deduction. However, few taxpayers were able to take advantage of this deduction due to the restrictive conditions of the 2% rule.

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