New York Tax Preparer: Can You Deduct Your Tax Prep Fees?

If you’re living in New York state, you may be wondering if you’re allowed to deduct tax preparation fees on your New York tax return. Even though tax preparation fees are not deducted on federal returns, they may be deductible as part of your income tax if you live in certain other st

Can You Deduct Tax Preparation Fees as a New York Taxpayer?


Do you own a business or are you self-employed and have to prepare your own taxes in New York? If so, it’s good to know that tax preparation fees are considered ordinary and necessary business expenses that can be deducted from your taxable income. While the deduction is allowed for most taxpayers, it is not allowed if you live in New York City or one of the other twenty-two counties that levy their own local income taxes on top of state tax obligations.


Are tax preparation fees deductible in NY?


New York residents can deduct tax preparation fees on their state taxes, but not federal. If you're looking to deduct your taxes, find an experienced New York State tax preparer that's qualified to prepare both personal and business income taxes.

For those who choose to hire someone for help with their taxes, either because they have complex finances or just want professional advice, some may think about deducting these expenses from their taxable income. But these expenses are no longer deductible at all levels of government--even if you use a New York tax preparer or accountant to file your taxes.

Harris Sophiy

7 Blog posts