3

Last year I paid a tax preparer to prepare some back filings as well as the filing for the year prior. How much of that is deductible? US, by the way.

4

Probably none. First, you need to itemize. But then, this deduction is subject to a 2% floor, i.e it's only deductible to the extent it exceeds 2% of your AGI. If these fees were on the high side, some might have exceeded this floor. And in that case you can use the entire amount spent when you start the math.

Update - David, I'm sorry if my answer appeared curt. All expenses you paid in 2014 are part of the math when doing your return due 4/15/15, even though the work was for older returns the tax guy worked on. The rest of my answer should be that you need to study where on Schedule A this flows to -

enter image description here

There are a few things that add up for this category. It then gets grouped and only what exceeds 2% of your AGI flows to the Schedule A numbers. For those already in the black via line 21, the result is all cost flows to the deduction. Without that, there's a good chance little to none will be helpful to you.

  • 4
    It is not this individual deduction that is subject to the 2% floor, but the sum of various deductions grouped together as Miscellaneous Deductions. Only that part of the sum total of Miscellaneous Deductions that exceeds 2% of AGI can be deducted. So, if the OP has several other items that can be deducted under the Miscellaneous Deductions rubric, and of course, the bottom line of Schedule A must also exceed the standard deduction (unless the OP is forced to use Itemized Deductions for some reason, e.g. filing MFS). – Dilip Sarwate Jan 17 '15 at 3:08
  • 1
    Good point. It's a limited list of items that apply, but you are correct, it's more that this one. – JTP - Apologise to Monica Jan 17 '15 at 3:12
  • So does the total apply towards the 2% since I spent it in 2014? Even if most was for prior late filings? – David Wilkins Jan 17 '15 at 3:13
  • 3
    @DavidWilkins total of what you spent in 2014, doesn't matter for which year. – littleadv Jan 17 '15 at 5:08

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.