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.