Business & Finance Taxes

How to Enter Tax Preparation Fees on a Tax Return

By Business & Finance Last updated Monday, May/13/2024

1). Report your tax preparation costs from the previous year on line 22 of Schedule A.
2). Add your tax preparation costs to any other miscellaneous deductions you claim, including unreimbursed employee expenses such as job travel and report the total on line 24.
3). Enter your adjusted gross income from line 38 of your Form 1040 income tax return on line 25 of Schedule A.
4). Multiply your adjusted gross income by 0.02 and report the result on line 26. For example, if your adjusted gross income equals $34,000, multiply $34,000 by 0.02 to get $680.
5). Subtract 2 percent of your adjusted gross income, the amount on line 26, from your total miscellaneous deductions, including your tax preparation fees, and report the total on line 27 of Schedule A.
6). Add your miscellaneous tax deductions to any other itemized deductions you claim and report the total on both line 29 of Schedule A and line 40 of Form 1040. This amount replaces your standard deduction and reduces your taxable income for the year.

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