Tax Tip: Deducting Income Tax Preparation Fees and Software Expenses
TurboTax Canada
February 27, 2020 | 1 Min Read
Updated for tax year 2024
If you’re looking for some extra tax relief, you may be wondering if the cost of preparing your tax return is deductible. For most Canadian taxpayers, the answer unfortunately is no.
Accounting fees and the cost of tax prep software are only tax-deductible in a few situations:
- If you’re self-employed or earned rental income, accounting and tax prep software expenses are considered eligible business/rental deductions.
- Commission employees may claim accounting fees and the cost of tax prep software as employment expenses. As with other employment expenses, have your employer complete and sign a Form T2200, Declaration of Conditions of Employment.
If your tax return is re-assessed and you consult a professional accountant for advice, those fees may be deductible in certain cases.
Visit the Canada Revenue Agency’s Line 23200 – Legal Fees web page for details.
Related articles
CANADA REVENUE AGENCY
Tax Implications of Client and Employee Gifting and Receiving
Read more
© 1997-2024 Intuit, Inc. All rights reserved. Intuit, QuickBooks, QB, TurboTax, Profile, and Mint are registered trademarks of Intuit Inc. Terms and conditions, features, support, pricing, and service options subject to change without notice.
Copyright © Intuit Canada ULC, 2024. All rights reserved.
The views expressed on this site are intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.