Does the mere mention of April 15th give you traumatic flashbacks of slogging through receipts, documents, and contracts? You might consider getting help from a professional accountant to prepare your taxes for you. Not only do accounting services take care of a headache for you, but in some cases, they can qualify you for an additional benefit.
If you’re getting tax preparation services in Mesa, then you may be eligible for a deduction on the fees you pay. Want to end up with money in your pocket after working with a tax preparer in Mesa? Here’s all the information you need to know.
Who Is Eligible For a Tax Preparation Fee Deduction?
Unfortunately, the vast majority of people filing their taxes will not be eligible to receive a deduction for tax preparation. If you work for someone else’s business as an employee and receive a W-2 for your taxes, then you will not be able to deduct tax preparation costs.
Although many people were previously able to claim deductions for tax preparation fees, in recent years, this status has changed due to Tax Cuts and Jobs Act that passed in 2017. You can no longer avail many common itemized tax breaks, such as moving costs, medical bills, and of course, tax preparation expenses.
This deduction isn’t entirely gone, however. If you’re fully self-employed, you are likely qualified to receive a deduction for tax preparation services in Mesa. If any of these descriptions apply to you, then you will be able to qualify:
- A sole proprietor filing Schedule C for your tax return:
- A farmer filing Schedule F with your return:
- Someone who owns rental properties and receives income or royalties from them, filing on Schedule E.
You may also be able to claim this deduction if you work as a statutory employee, such as a driver for a rideshare program, a traveling salesman, or a life insurance agent. It’s best to check with an experienced tax preparer in Mesa to thoroughly assess your situation and determine if any approved rules apply to you.
How Much Can You Deduct From Your Tax Preparation Fees?
You likely won’t be able to deduct the total cost of tax preparation. As with many other kinds of deductions, you can only claim a tax preparation fees reduction for the portion of the expenses directly related to your business.
For example, if your accountant prepared taxes for your business as well as your property taxes, then only the portion of the services put toward your business can be deducted. If you’re having trouble working out the exact proportions, then it may be best for you to work with an experienced tax preparer in Mesa who can answer your questions.
Where to Get Help with Tax Preparation?
Taking advantage of every deduction available to you can feel like an overwhelming process, so M&M Accounting’s experienced team stands by to help. We can assess your situation to help you reap the rewards of deductions and hefty returns. Contact us today to get started with tax preparation services in Mesa.