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All tax preparation expenses, including software, are considered deductible. However, tax preparation expense is one of a slew of deductions that are subject to the 2% rule. That means you only get to deduct the amount above 2% of your adjusted gross income for all deductions claimed in this class. Obviously, if you use free tax software, no tax preparation fee deduction applies. Tax planning software may or may not be deductible, depending on the functions it performs. For more information on deducting tax preparation fees and other items that are subject to the 2% rule, read IRS Publication 529, Miscellaneous Deductions.
I am was a missionary for 25 yrs. and am now pastoring a church in CT. I used to be able to deduct a certain percentage for upkeep of my library and any additional books and study materials in addition to any other expenses related to my position as pastor of the church. Additionally, I have to commute to one job in the morning and drive to my job at church in the evening and on weekends are there deductions for that also?
|Jennifer Mathes, Ph.D.|