NOTE: this blog was originally posted in 2009. If you have questions about tax breaks for teachers for 2010 please use our Ask A Tax Question form and we will be able to answer your questions as quickly as possible. Thank you for stopping by FiscalTax.com!
One commonly overlooked expense that you can claim on your return this year is deducting fees paid for tax preparation on your Federal tax return for last year. If you file an itemized tax return, you can deduct the costs of your purchase of any tax preparation software programs, tax publications, electronic filing costs, and preparation fees. Please note, the only way to claim this deduction is if you file an itemized tax return.
The fees can be deducted on several forms, depending on your use of the services. If you are self employed, it will be taken on Schedule C. Others may end up using Schedules A, C-EZ, E, or F to list this deduction, or a combination of all forms, with regard to whether the service is for personal or business use.
This tax break really makes getting your taxes professionally prepared worthwhile because the tax preparers are schooled in all the latest IRS rules and regulations and know about new tax breaks. Many companies also offer a good guaranteed against errors and will even stand behind their work if audited.
Be sure to save any receipts for purchases of software for tax preparation, and other receipts that are for tax preparation. Then, all you need to do is put the deduction figures into the proper line on your itemized tax return to claim the credit for these expenses. It is a good deduction, and the IRS wants your returns done correctly as much as you do. Whether you use an accountant, a tax preparation service, or do it yourself with purchased tax preparation software, the costs are deductible.
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