As we enter the 2025 tax season, many taxpayers are wondering, can I claim tax preparation fees on my return? It’s a common question—and one that deserves a clear answer. With changing tax laws and updates to deduction rules, staying informed is the best way to avoid mistakes and save money.
Let’s break down what you need to know this year.
What Are Tax Preparation Fees?
Before diving into what’s deductible, let’s define the term. Tax preparation fees include any money you pay to file your taxes. This can mean hiring a tax professional, paying for tax software, or using an online filing service. For many years, these costs were deductible on your federal tax return. However, things changed in recent years.
So, Can I Claim Tax Preparation Fees in 2025?
The short answer is: it depends.
Under the Tax Cuts and Jobs Act (TCJA), which took effect in 2018, most miscellaneous itemized deductions—including tax preparation fees—were suspended. That suspension remains in place through the 2025 tax year.
This means that most individual taxpayers cannot claim tax preparation fees on their federal tax return in 2025. However, there are exceptions worth noting.
Exceptions for Self-Employed Taxpayers
If you are self-employed, an independent contractor, or a small business owner, you’re in luck. You can claim tax preparation fees that are related to your business return.
For example, if your accountant prepares both your personal and business taxes, you can deduct the portion of the fee related to your business filing on Schedule C. This is considered a valid business expense and can help reduce your taxable income.
What About State Tax Returns?
Even though the federal deduction is limited, some states still allow deductions for tax preparation fees. Each state sets its own rules, so you’ll need to check your state’s Department of Revenue or consult with a tax advisor to confirm.
This added benefit could help you save more than you think—especially if your tax prep fees are significant.
Tips to Maximize Your Tax Benefits
To make the most of your tax situation this year, consider the following:
Keep all receipts and invoices related to tax preparation
Separate personal and business filing costs
Ask your tax professional for an itemized breakdown
Double-check both federal and state deduction rules
File early to avoid errors and delays
Final Thoughts: Know the Rules Before You File
So, can I claim tax preparation fees in 2025? For most individuals, the answer is no—but business owners still have opportunities. Understanding the rules can make all the difference when it comes to optimizing your tax return.
At Greenblatt Financial Services, we’re here to guide you through every step of the process. Contact us today and file with confidence.