What Is a Tax Preparation Fee Tax Break Credit? 

The 2017 Tax Cut and Jobs Act repealed many miscellaneous expenses that were formerly being claimed on a personal tax return. Payment for a tax preparation service, such as for an accountant or franchised tax preparer, allowed for a minimal deduction to be itemized. Many filers may not notice that these deductions have been eliminated because they weren’t worth more than two percent of the fee paid. Paying a $200 tax preparation fee would have only allowed a tax break credit of four dollars. Business entities, however, can still deduct their full tax preparation fees as an expense. This requires setting up a valid tax entity and possessing an employer identification number, which can be obtained through our simplified EIN number application.

Taking Advantage of Repealed Miscellaneous Deductions

Individual tax filers will no longer be able to itemize all the miscellaneous deductions that were formerly available. Claiming tax preparation or tax advice fees as an expense on your next tax return is possible, however, by creating a new business or setting up a separate entity for record-keeping purposes. Doing so is easy with our tax ID services and will also allow you to take advantage of all your rightful deductions.

Other former miscellaneous expenses a business or new tax entity can claim:

  • Tax preparation and tax advice fees
  • Fees paid for investment advice and related expenses
  • Rent on a safe deposit box at a bank or financial institution
  • Transportation and lodging costs for work-related travel
  • Meals, gifts and entertainment for clients, employees or vendors
  • Portion of a home that is used as an office for work purposes

Benefit From a New Tax Entity Set-up

Gov Doc Filing provides an easy application process for any individual who can benefit from setting up a new business or tax entity. Having the correct tax ID number format will help to create a plan that allows for all your maximum allowable expenses to be deducted. If you have any questions, our support team will be standing by 24/7.

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