This year I filed my taxes with TurboTax. As a result, Intuit charged me electronic filing fees, so did the company that handled my tax payment to the IRS. Then there's the payment to the IRS itself.
Of these three, which can I deduct for next year's return?
2007-04-13 12:55:55 · 4 answers · asked by The Light™ 4 in Business & Finance ➔ Taxes ➔ United States
Taxes you pay to the IRS are never deductible. Page 8 of Publication 529 covers miscellaneous itemized deductions. The cost of the TurboTax software and the electronic filing fee are deductible to the extent they exceed 2% of your AGI. The convenience fee charged by the payment processor is not.
2007-04-13 14:15:39 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋
The payment to the IRS is your tax - that's not deductible. The Intuit charge is a charge for tax prep, and can be taken on next years return as a miscellaneous deduction if you itemize. You can only take miscellaneous deductions that exceed 2% of your AGI.
I don't understand though why you filed with Turbo Tax AND had payments to a company that "handled your tax payment to the IRS". If that was a fee for paying electronically, that wouldn't be deductible. If it was a tax preparation fee also, then it would qualify as a miscellaneous deduction.
2007-04-13 20:09:05 · answer #2 · answered by Judy 7 · 2⤊ 1⤋
not personal but theres freetax prep online throught the web site irs.gov its free if you make less than 52.000.00 a year
2007-04-13 19:59:54 · answer #3 · answered by Anonymous · 0⤊ 0⤋
yes
2007-04-13 20:32:43 · answer #4 · answered by Anonymous · 0⤊ 2⤋